How to use this calculator
Enter current MRR, expansion revenue from upgrades, churned revenue, and expected monthly price increase impact.
The calculator estimates adjusted MRR and annual recurring revenue.
#895 · Startup Tool
ARR Calculator
Calculate ARR from current MRR while accounting for expansion, churn loss, and price increases. This SaaS ARR calculator helps teams estimate annual recurring revenue, growth quality, and milestone progress.
Calculator
MRR, expansion, churn, and pricing inputs$ /mo
$ /mo
$ /mo
$ /mo
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What the result means
ARR annualizes recurring revenue. Expansion and pricing improvements increase ARR, while churn loss reduces the quality and durability of recurring revenue.
Adjusted MRR = Current MRR + Expansion revenue − Churn loss + Price increase impact. ARR = Adjusted MRR × 12.
ARR should include recurring subscription revenue, not one-time implementation, services, or setup fees.
Example calculation
With $45,000 MRR, $7,000 expansion, $3,500 churn loss, and $2,500 price impact, adjusted MRR is $51,000 and ARR is $612,000.
Tips for better results
- Separate expansion ARR from new customer ARR.
- Review churn impact before celebrating ARR growth.
- Use ARR milestones for planning valuation and fundraising narratives.
FAQ
How do I calculate ARR from monthly recurring revenue?
Multiply adjusted MRR by 12 to estimate annual recurring revenue.
How much MRR is needed for $1 million ARR?
About $83,333 MRR is needed to reach $1 million ARR before considering churn or expansion changes.
Should churned revenue be included when calculating SaaS ARR?
Churned recurring revenue should be subtracted from current or projected ARR because it is no longer retained revenue.
How does expansion revenue increase ARR?
Expansion revenue from upgrades or seat growth increases adjusted MRR, which increases ARR when annualized.
What ARR milestone should a seed stage SaaS target?
Targets vary, but many SaaS teams use ARR milestones to show traction before a Series A or growth round.
Related calculators
ARR metrics
| Metric | Use |
|---|---|
| Adjusted MRR | MRR after expansion, churn, and pricing effects. |
| ARR | Annualized recurring revenue. |
| Net new MRR | Incremental monthly recurring revenue added. |
| Growth quality | Whether ARR growth comes from durable expansion. |
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