ARR Calculator
Annual Recurring Revenue, or ARR, is the headline number that defines the scale of a subscription business, and this calculator converts your monthly figure into it instantly. ARR is the value of your recurring revenue normalised to a full year, the figure quoted when a SaaS company describes its size, sets its valuation, or reports its growth. Where MRR is the monthly pulse, ARR is the annual scoreboard, and because it strips out one-off revenue and counts only the predictable, contracted subscription base, it is the cleanest measure of how big and how durable a software business really is. This calculator gives you ARR and its breakdown across other periods. You enter your Monthly Recurring Revenue, and the calculator returns your ARR, which is simply twelve times MRR, along with the equivalent quarterly and monthly figures for reference. The results update as you type. Use it to state your business's scale, to convert between reporting periods, to set annual targets, or to prepare figures for a board or investors. A few conventions worth knowing: ARR should reflect only recurring revenue, so exclude one-off fees and non-recurring services; for businesses with annual contracts, ARR is often built directly from the total contract values rather than from MRR, but the twelve-times relationship holds for a steady monthly base; and ARR is usually quoted as a point-in-time run-rate, the annual value of the recurring revenue you have right now, not the revenue actually recognised over the past year. Growth in ARR, especially net of churn, is the metric that most directly tracks the long-term value a subscription business is building, which is why it anchors SaaS reporting and valuation.
ARR = MRR x 12. Counts only recurring revenue; exclude one-off fees. Usually quoted as a point-in-time run-rate, the annual value of your current recurring revenue.
How it works
ARR is your Monthly Recurring Revenue multiplied by twelve, the annualised value of your current recurring revenue run-rate. The quarterly figure is three times MRR and the daily figure divides ARR across 365 days. Only genuinely recurring subscription revenue should be included.
Worked example
A business with an MRR of $16,000 has an ARR of twelve times $16,000, which is $192,000. That is the annual run-rate of its current recurring revenue. The same figure breaks down to $48,000 per quarter and about $526 per day of recurring revenue.
Related calculators
- MRR Calculator: monthly recurring revenue.
- Rule of 40: growth plus profit.
- NRR Calculator: net revenue retention.
- Burn Multiple: capital efficiency.