Calculator
Example Data Table
| Scenario | Avg Retainer | Clients | Other MRR | Expansion | Contraction | Churn | Net MRR | Net ARR |
|---|---|---|---|---|---|---|---|---|
| Starter | $1,000 | 4 | $250 | $100 | $50 | $75 | $4,225 | $50,700 |
| Growth | $1,500 | 6 | $400 | $250 | $100 | $150 | $9,400 | $112,800 |
| Premium | $2,400 | 8 | $900 | $600 | $150 | $300 | $20,250 | $243,000 |
Use the table as a benchmarking example for freelance retainer pricing, client mix, and annual recurring revenue planning.
Formula Used
Base MRR = (Average Monthly Retainer × Active Clients) + Other Recurring Monthly Income
Net MRR = Base MRR + Monthly Expansion − Monthly Contraction − Monthly Churn
Base ARR = Base MRR × 12
Net ARR = Net MRR × 12
Projected Monthly MRR = Current Net MRR × (1 + Monthly Growth Rate)n
Forecast Recurring Revenue = Sum of projected monthly MRR values across the selected forecast period
For freelancers, ARR is usually a run-rate view. It annualizes dependable monthly retainer revenue rather than one-off project income.
How to Use This Calculator
- Choose the currency that matches your freelance bookkeeping.
- Enter your average monthly retainer and active recurring clients.
- Add any recurring add-ons, support retainers, or subscriptions.
- Enter expansion revenue from upsells or scope increases.
- Enter contraction and churn to reflect downgrades or lost clients.
- Set a monthly growth rate if you want a forward-looking forecast.
- Pick the number of forecast months, then calculate.
- Review the result cards, graph, and export the summary if needed.
Frequently Asked Questions
1. What does MRR mean for a freelancer?
MRR is the dependable monthly revenue you earn from recurring retainers, subscriptions, or ongoing service agreements. It excludes one-time projects unless they renew every month.
2. What is ARR in freelancing?
ARR is annual recurring revenue. It estimates the yearly value of your recurring freelance income by annualizing stable monthly revenue. It helps with pricing, planning, and capacity decisions.
3. Why subtract churn and contraction?
Churn removes revenue lost from canceled clients. Contraction removes reduced retainers or downsells. Subtracting both gives a more realistic ARR figure than multiplying gross MRR by twelve.
4. Should one-time project income count?
Usually no. ARR should focus on recurring, predictable revenue. One-time project fees can be tracked separately because they do not represent repeatable annual income.
5. What is expansion revenue?
Expansion revenue comes from existing clients paying more. Examples include added deliverables, extra consulting hours, or upgraded support packages on the same recurring agreement.
6. Why include a growth rate?
The growth rate helps you estimate future recurring income. It is useful for forecasting cash flow, hiring plans, and annual targets beyond today’s run-rate ARR.
7. Can this calculator work for agencies?
Yes. Agencies can use the same logic for recurring retainers, maintenance contracts, and subscription-style services. Just enter team-based recurring income instead of solo freelancer figures.
8. How often should I update the numbers?
Update them monthly or whenever pricing, client count, churn, or retainers change. Frequent updates make your ARR planning more accurate and improve business decisions.