Annual-to-monthly normaliser

Updated 2026-08-04

Every MRR calculation depends on one operation: turning a price charged on some arbitrary interval into a monthly equivalent. Get this wrong and every number downstream is wrong.

Monthly equivalent (MRR)
$0.00
Annualised (ARR)
$0.00

The conversions

Interval Months Monthly equivalent
Daily 0.0329 price × 30.42
Weekly 0.2301 price × 4.333
Fortnightly 0.4603 price × 2.167
Monthly 1 price
Quarterly 3 price ÷ 3
Semi-annual 6 price ÷ 6
Annual 12 price ÷ 12
Biennial 24 price ÷ 24

Weekly and daily use 365 ÷ 12 = 30.4167 days per month rather than a flat 30, which is why the factors have awkward decimals. Over a year the difference is real: rounding a weekly plan to ×4 costs you about 8% of the figure.

Why this matters more than it looks

Two businesses with identical annual revenue can report wildly different MRR if one normalises and one doesn't. The one that counts a $490 annual payment as $490 of MRR in January will show a 92% "churn" in February — not because anything happened, but because the arithmetic was wrong.

Normalising is also what makes plans comparable. A $490/year customer and a $45/month customer are worth almost the same per month, and any decision you make about which to pursue should start from that fact.

Doing it across a whole account

Fine for one plan. Tedious across 300 subscriptions on four different intervals across three platforms — which is precisely what FRGMNT automates, live, on your phone.

Frequently asked

How do I convert an annual subscription to monthly revenue?

Divide the annual price by twelve. A $490 annual plan is $40.83 per month of recurring revenue.

How do I convert a quarterly plan to MRR?

Divide by three. A $150 quarterly plan contributes $50 of MRR.

Why not just divide the weekly price by 4?

Because a year has 52 weeks, not 48. The correct factor is 52 divided by 12, about 4.333. Dividing by 4 undercounts by roughly 8%.

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