technology-strategy-marketing-for-profitable-growth • Business and Technology in Plain English
• Since 1991

Free business financial calculators to measure and manage your profitable growth

Financial terms and math don't have to be a mystery

Business Essentials
Gross Margin
Cost Markup
Set Price Using Markup
Return on Investment (ROI)

Sales and Marketing
Convert Leads to Sales

SaaS Metrics
Customer Acquistion Cost (CAC)
Customer Churn
Customer Lifetime Value (LTV)
Monthly Recurring Revenue (MRR)
SaaS Company Viability

What is Monthly Recurring Revenue?

Often referred to simply as MRR, monthly recurring revenue is the amount of total monthly revenue generate from subscriptions.

This does not include one-time setup, onboarding or other non-recurring fees generated from a subscription. This non-recurring revenue should be reported under a separate P&L line item.

How to Calculate Monthly Recurring Revenue


You have 1000 total subscribers. 500 of them have subscribed to the $10 starter plan payable monthly. The other 500 customers have purchased the $300 premier plan billed annually.

(500 x $10) + (500 x $300/12) = $17,500

Simple MMR Formula Cheatsheet

Annual or paid-in-advance subscription payment:

MRR = (Prepaid subscription revenue/number of months) x number of customers)

Monthly subscription payment:

MRR = (Monthly subscription revenue x number of customers)


Join Our Learning Community
Your Privacy Matters
© 1991-2022 Quest Technology Group, LLC All rights reserved.

 Our Partner Promise

Quest Technology Group
315 E. Robinson Street • Suite 525
Orlando, FL 32801
Phone: 407 . 843 . 6603