MRR Calculator
Annual plans normalised, not booked in full.
MRR
$49,783
$597,400 annualised
Annual plans are normalised to a twelfth of their value, not counted in the month they were billed. Booking the whole annual payment as that month's MRR is the most common way subscription reporting becomes unreadable — it produces spikes that look like growth and troughs that look like collapse.
How the MRR Calculator works
Booking a whole annual payment as that month's MRR is the most common way subscription reporting becomes unreadable — it produces spikes that look like growth and troughs that look like collapse. Annual plans belong in MRR at a twelfth of their value.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is MRR calculated?
Monthly subscription revenue plus annual subscriptions divided by twelve. One-off fees, setup charges and professional services do not belong in it.
Why normalise annual plans?
Because MRR is meant to describe the recurring run rate, not cash received. Counting a year's payment in one month makes the series useless for spotting trends.
Should discounts be included?
Yes — MRR should reflect what customers actually pay, net of discounts. Reporting list-price MRR overstates the base and produces a nasty surprise at renewal.
What about usage-based revenue?
Predictable committed usage can be included; variable overage generally should not. Whatever you decide, apply it consistently — the definition matters more than which one you pick.