Question 1

What is the main difference between MRR and ARR?

Accepted Answer

MRR is your monthly snapshot of recurring revenue, while ARR is a annualized figure that helps investors assess your business scale over the course of a year.

Question 2

Should I include one-time setup fees in my calculation?

Accepted Answer

No. Recurring revenue metrics should strictly include subscription fees that repeat on a regular schedule. One-time fees should be separated from your recurring revenue calculations.

Question 3

How often should I update my MRR?

Accepted Answer

It is recommended to update your MRR at the end of each month to account for new sign-ups, cancellations (churn), and subscription tier changes.

ARR & MRR Calculator