#136 · Startup Tool

ARR Calculator

Convert MRR into annual recurring revenue and estimate ARR after new MRR, expansion, contraction, and churn.

Your numbers

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Ad space
ARR is not only MRR × 12 here. Projected ARR and Growth ARR show how current month MRR changes annualized revenue.

How this calculator works

This arr calculator is designed for SaaS, subscription, and recurring-revenue businesses. Enter your current operating numbers to get a fast directional result.

ARR = ending MRR × 12
Keep the reporting period consistent. Monthly metrics should use monthly revenue, monthly churn, and monthly acquisition counts.

How to use it

  • Use clean finance or analytics data from the same period.
  • Exclude one-time revenue when calculating recurring revenue metrics.
  • Compare the result against prior months to see trend direction, not just one snapshot.

Result interpretation

ARR is a run-rate metric. It is useful for planning, but it should be read together with churn, expansion, and actual cash collection.

ARR growth interpretation

Projected ARR / Growth ARR added: Use current MRR × 12 as baseline ARR, then compare projected ARR after growth. The difference is Growth ARR, which helps separate current recurring revenue from forward-looking expansion.

FAQ

What is ARR?

ARR is annualized recurring revenue based on subscription revenue.

Is ARR the same as annual revenue?

Not always. ARR excludes non-recurring revenue and annualizes subscription run rate.

How should I use this result?

Use it as a quick operating metric, then compare it with cohort trends, cash flow, pricing changes, and acquisition channel quality.

Is this calculator exact accounting?

No. It is a planning calculator. Use consistent definitions from your finance reports when making board or investor decisions.