Canonical formula calculator
MONTHLY RECURRING REVENUE
The single most important number for subscription businesses — how much revenue you can count on every month.
Worked example
How the number is worked out
A scheduling app with 420 paying accounts on a mix of plans.
Starting from
Working
Twelve thousand a month arrives without anyone selling anything new. That is the floor the business starts each month from — and the number churn quietly erodes while new sales are being counted.
What this tells you
Monthly Recurring Revenue is the heartbeat of any subscription business. It tells you how much revenue you can predict every month from your existing customer base, before any new sales. It is the number investors ask about, the number you build your runway against, and the number that compounds when you do everything else right.
When to use it
Calculate MRR monthly at minimum. Track it over time. Use it to set growth targets. Use it to understand customer lifetime value. Use it to know whether your business is actually growing or just churning new customers in and out at the same rate.
What it doesn’t tell you
MRR does not tell you about churn, expansion revenue, or whether your customer mix is healthy. Two businesses with the same $50,000 MRR can be in completely different positions if one has 50 customers paying $1,000 and the other has 5,000 customers paying $10. MRR is necessary; it is not sufficient.
Reckon it, don’t just calc it
A calculator gives you today’s number. Reckon takes your plan to make your own money and checks it against what’s real — your margin, your price, what it takes to hit the take-home you want. No AI, no guessing — the same input always gives the same answer.