Monthly Recurring Revenue Calculator

Formula

To calculate the Monthly Recurring Revenue (MRR):

\[ MRR = TS \times AMR \]

Where:

$MRR$ is the monthly recurring revenue ($/month)
$TS$ is the total number of monthly subscribers
$AMR$ is the average monthly revenue per subscriber ($)

What is MRR?

MRR, short for monthly recurring revenue, is a term used in business, mostly with subscription-based services, to describe the total monthly revenue the company expects to see on a recurring basis. The reason this term is used for subscription-type services is that subscribers typically pay a recurring fee for the service. Most often it’s a monthly fee, but it can even be annually.

Example Calculation 1

Let's assume the following values:

Total Number of Subscribers (TS) = 1000
Average Monthly Revenue per Subscriber (AMR) = $50

Using the formula:

\[ MRR = 1000 \times 50 = 50000 \text{ dollars per month} \]

The Monthly Recurring Revenue is $50,000 per month.

Example Calculation 2

Let's assume the following values:

Total Number of Subscribers (TS) = 500
Average Monthly Revenue per Subscriber (AMR) = $30

Using the formula:

\[ MRR = 500 \times 30 = 15000 \text{ dollars per month} \]

The Monthly Recurring Revenue is $15,000 per month.