Global SaaS metric
SaaS MRR Calculator
Convert MRR to ARR instantly.
MRR
$50,000
ARR
$600,000
MRR and ARR for SaaS metrics
Monthly vs annual recurring revenue
Monthly recurring revenue (MRR) is the normalized monthly value of all active subscriptions. Annual recurring revenue (ARR) is typically MRR × 12 and is how many B2B SaaS companies quote scale to investors.
MRR should exclude one-time setup fees, professional services, and usage overages unless your model treats them as core recurring revenue.
Using MRR in planning
MRR bridges product metrics (new, expansion, contraction, churn) to financial statements. Founders use it for board reporting, hiring plans, and valuation multiples.
When modeling runway, use net burn (costs minus MRR), not MRR alone — cash timing and expenses still drive survival.
Frequently asked questions
- ?Should annual contracts be divided by 12 for MRR?
- Yes — normalize annual prepay to monthly value for MRR. Cash accounting and MRR recognition differ; track both separately.