Business & Freelance
Recurring Revenue Calculator - MRR & ARR | FinanceMetricX
Calculate MRR, ARR, and projected growth for subscription businesses. Factor in churn and growth rates for accurate projections.
Active paying subscribers
Monthly subscription price per customer
Customers lost per month
New customers gained per month
How far ahead to project
How It Works
MRR and ARR
Monthly Recurring Revenue (MRR) is the predictable revenue your business earns each month from subscriptions. Annual Recurring Revenue (ARR) is simply MRR × 12. These are the primary metrics for subscription businesses.
Churn vs Growth
Churn rate is the percentage of customers you lose each month. Growth rate is new customers gained. Net revenue retention = growth minus churn. A healthy SaaS business keeps monthly churn below 5% and aims for net positive growth.
Benchmarks for Indian SaaS
- Healthy churn: 3–5% monthly for SMB-focused products
- Good growth: 10–15% monthly for early-stage startups
- Net revenue retention: Above 100% indicates expansion revenue exceeds churn
Frequently Asked Questions
MRR (Monthly Recurring Revenue) is your total predictable monthly income from subscriptions. ARR (Annual Recurring Revenue) is MRR × 12. MRR is better for short-term planning and tracking month-over-month growth. ARR is used for annual planning and fundraising discussions.
For B2B SaaS targeting SMBs, 3-5% monthly churn is common. Enterprise SaaS should aim for under 1% monthly. For B2C subscriptions, 5-10% monthly is typical. The key metric is net revenue retention — if expansion revenue exceeds churn, you have negative net churn (which is good).
Focus on onboarding (first 30 days are critical), identify at-risk customers early through usage metrics, provide proactive support, and continuously deliver value. In India's price-sensitive market, also consider flexible pricing tiers and annual billing discounts.