To calculate your monthly recurring revenue, simply multiply your total number of paying users by the average revenue per user (ARPU).
Monthly Recurring Revenue Formula
Number of Paying Users x ARPU = MRR
Pretty easy, right? Well, let’s make sure there are no doubts by looking at an example.
Imagine you’re an emerging SaaS company with 2,358 customers who have each paid $65 in onboarding fees and an average of $149 per month to use your service. How do you calculate your monthly recurring revenue?
Well, first, you’re gonna completely ignore that $65 onboarding fee! Why? Because, as you may remember, one-time fees don’t count when calculating MRR.
Instead, you’re just going to focus on your number of paying customers (2,358) and the average amount they pay for your service per month ($149). Then, you’re gonna plug those numbers into that formula and voila!
2,358 Paying Users x $149 = $35,1342 of Monthly Recurring Revenue