ARR Growth Rate Calculator

The ARR growth rate calculator shows you how quickly your annual recurring revenue is expanding over a year. Annual recurring revenue, or ARR, is the value of your subscription contracts on an annualised basis, and its growth rate is one of the headline metrics investors and boards look at when judging a SaaS business. You enter your ARR at the start of the period and your ARR at the end, and the tool returns the growth rate as a percentage along with the dollar value of the net change. The maths is straightforward, the end ARR minus the start ARR, divided by the start ARR, multiplied by 100, but presenting it cleanly makes it easy to drop into a report or a fundraising deck. Founders, chief financial officers and revenue leaders rely on this figure to track year on year momentum, set targets and benchmark against peers. A handful of good-practice tips will keep the number meaningful. First, measure across a consistent twelve month window so each comparison is like for like, rather than mixing partial years. Second, agree whether ARR counts only committed contracted revenue or also includes likely renewals, then apply that definition every time. Third, read the percentage alongside the absolute dollar change, since a high growth rate on a small base can look more impressive than it is while a steady rate on a large base can represent enormous value created. It also helps to pair ARR growth with retention and churn measures, because durable growth comes from keeping customers as well as winning new ones. Used each year, this calculator gives you a clear, repeatable view of how fast your recurring revenue base is scaling.

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25.0%
ARR growth rate
Net ARR change$150,000

Growth rate = (end ARR - start ARR) / start ARR. Estimate only, not financial or tax advice.

How it works

The tool subtracts your starting ARR from your ending ARR to find the net change in dollars. It then divides that change by the starting ARR and multiplies by 100 to express the annual growth as a percentage.

Worked example

With a starting ARR of $600,000 and an ending ARR of $750,000, the net change is $150,000. Dividing $150,000 by $600,000 gives 0.25, which is a 25.0 percent growth rate.

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Frequently asked questions

What is the difference between ARR and MRR growth?

ARR growth measures change over a full year, while MRR growth measures change month to month. ARR is usually MRR multiplied by twelve. The formula is the same, only the time period and scale differ.

What counts as a healthy ARR growth rate?

It varies by stage. Early companies often double or triple ARR, while larger, more mature businesses may grow at a steadier pace and still create strong value. Compare your rate with similar companies and your own history rather than a single benchmark.

Should ARR include one-off revenue?

No. ARR should reflect recurring subscription value only, so professional services, setup fees and other once-off income are excluded. Keeping the definition consistent makes your growth rate trustworthy.