# Free MRR and Runway Calculator

> Free MRR calculator. Get MRR and ARR from customers and price, then your months of runway from monthly burn and cash, with an optional growth rate.

Canonical: https://abacklaunch.com/tools/mrr-calculator
Last updated: 2026-10-31

Work out your monthly and annual recurring revenue, then how many months your cash lasts at your burn rate, with or without growth.

This is an interactive tool. Use it at https://abacklaunch.com/tools/mrr-calculator (it runs in your browser; nothing is uploaded).

## How to use it

1. **Enter your revenue**: Paying customers and the average each pays per month.
2. **Enter costs and cash**: What you spend in a month and the cash in the bank.
3. **Add growth**: Optional: your monthly MRR growth, to see if revenue covers costs before the cash runs out.

## How MRR, ARR and runway are calculated

MRR, monthly recurring revenue, is paying customers times the average they pay per month. ARR, annual recurring revenue, is MRR times 12: the revenue you would book in a year if nothing changed.

Net burn is what you spend in a month minus your MRR. Runway is your cash divided by net burn: the months left before the bank account reaches zero. If MRR is already higher than your costs, you have no burn and the cash does not run out.

With a growth rate, the calculator grows MRR by that rate each month and recounts the cash left month by month. That shows whether revenue catches up with costs before the money runs out, and how low the balance gets on the way.

## What counts as MRR

Count only recurring subscription revenue, after discounts. Divide annual plans by 12. Leave out one-time setup fees, consulting work, free trials and customers who have not paid yet: they are revenue, but not recurring.

## Default alive or default dead

A startup is default alive if, at its current growth and costs, revenue covers expenses before the cash runs out. If not, it is default dead: it needs to raise money, cut costs or grow faster. Run the calculator with your real growth rate of the last few months to see which one you are.

## Questions

### What is the difference between MRR and ARR?

MRR is the recurring revenue you earn in a month. ARR is the same figure for a year, MRR times 12. Early startups usually talk in MRR; larger ones in ARR.

### How do I count annual plans in MRR?

Divide the annual price by 12 and count that each month, even though the customer paid once up front. The cash arrives early, but the revenue belongs to the whole year.

### What is the difference between gross burn and net burn?

Gross burn is everything you spend in a month. Net burn is gross burn minus revenue: the amount your bank balance actually falls each month. Runway uses net burn.

### How much runway should a startup have?

A common rule of thumb is 18 to 24 months after a raise. Start fundraising with at least 6 months left, since a round often takes 3 to 6 months to close.

### Is what I enter stored or sent anywhere?

No. Every number is calculated in your browser and nothing is saved.

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