Annual Recurring Revenue (ARR) Calculator
Replace the sample values with your own, in one currency and one reporting period. Enter percentages as whole numbers: 2 for 2%. Calculations run in your browser.
ARR = MRR × 12 | Variable | Meaning |
|---|---|
MRR | Monthly recurring revenue. |
Worked example
- MRR
- $10,000
- → ARR
- $120,000
Enable JavaScript to use the interactive calculator.
What ARR measures
ARR is annual recurring revenue, the annualized subscription revenue base of a SaaS company.
Prepare your inputs
- Start with a reconciled recurring revenue schedule, excluding one-time services and uncommitted pipeline.
- For a monthly run-rate definition, multiply current MRR by 12. If you use a contracted ARR definition, document when a signed contract enters and leaves the measure.
- Show the starting ARR, new subscriptions, expansion, contraction, and churn alongside the ending balance. Label the date and currency.
Formula
ARR = MRR × 12 | Variable | Meaning |
|---|---|
MRR | Monthly recurring revenue. |
Check the sample calculation
Worked example
- MRR
- $10,000
- → ARR
- $120,000
Before using the result
- ARR is not cash in the bank, a valuation, or a promise that all customers will renew.
- Do not add expected renewals or unsigned deals to current ARR. Keep forecasts in a separately labeled series.
- Annualizing a temporary usage spike can overstate the recurring base. Explain how variable consumption is handled.
A dash means the result is undefined for the inputs, such as division by zero. Review the assumptions and input errors before interpreting it.
Read the ARR guide for a business scenario, interpretation, and frequently asked questions.
Check how your team defines ARR before relying on the result.
Sources and methodology
The references below explain the underlying methods. Our worked scenarios use hypothetical figures; they are not company results or current market benchmarks.
- Stripe: Annual recurring revenue
Normalizing subscriptions to an annual basis.
Found an error or a definition that differs from your reporting? Send a correction with the page URL and the method you use.