Simple pricing model
A SaaS product has 1,250 active subscriptions paying an average of 79 per month.
Inputs
- Active subscriptions: 1,250
- Average monthly price: 79
Steps
- MRR = 1,250 x 79 = 98,750
Result
- Monthly recurring revenue is 98,750.
Calculate monthly recurring revenue from active subscriptions and average recurring price.
Result
Calculating the sample result.
MRR is the operating heartbeat of many SaaS businesses because it standardizes recurring revenue into a monthly lens that is easy to track.
Inputs
Outputs
Multiply the number of active recurring subscriptions by the average monthly subscription price.
MRR = active subscriptions x average monthly price
Simple pricing model
A SaaS product has 1,250 active subscriptions paying an average of 79 per month.
Inputs
Steps
Result
Yes, but convert them to a monthly recurring equivalent rather than counting the entire annual bill in one month.
No. MRR is a recurring revenue metric, not a cash timing metric.
Keep going
Annualize recurring monthly revenue to estimate annual recurring revenue.
Calculate average revenue per account from recurring revenue and the number of paying accounts.
Calculate how recurring revenue from an existing cohort changes after expansion, contraction, and churn.