Normalize subscriptions
Convert weekly, quarterly, and annual recurring contracts into monthly values.
Calculate monthly recurring revenue and see how expansion and churn change your SaaS revenue baseline.
Enter recurring revenue inputs for the same monthly period.
Monthly recurring revenue, or MRR, normalizes subscription revenue into one monthly number. It gives SaaS founders a consistent baseline for measuring growth, forecasting cash inflows, comparing periods, and understanding whether new and expanding accounts are outpacing churn.
Only predictable recurring charges belong in MRR. Exclude setup fees, professional services, hardware sales, taxes, and other one-time revenue. Annual contracts should be divided by twelve so the metric remains comparable from month to month.
(Active customers × monthly ARPA) + expansion MRR − churned MRRUse a consistent cutoff date and revenue policy so changes reflect the business rather than accounting noise.
Convert weekly, quarterly, and annual recurring contracts into monthly values.
Track new, expansion, contraction, and churned MRR as different components.
Review MRR by plan, customer segment, geography, or acquisition channel.
Revenue includes every recognized sale, while MRR includes normalized recurring subscription charges only.
Divide the recurring annual contract value by twelve. A $1,200 annual subscription contributes $100 to MRR.
Total MRR should not be negative, but net new MRR can be negative when churn and contraction exceed new and expansion revenue.