Calculate annual recurring revenue from SaaS MRR, expansion revenue, churn, and monthly growth. This tool estimates current ARR, projected ARR, net new ARR, and a growth health score for SaaS planning.
The result shows current ARR and how recurring revenue may grow when monthly growth, expansion, and churn are considered together. Strong ARR quality comes from durable MRR, low churn, and repeatable expansion revenue.
Use only recurring subscription revenue. Services, setup fees, and non-recurring invoices should not be included in ARR.
If current MRR is $40,000, growth is 8%, expansion MRR is $3,000, and churned MRR is $1,500, projected MRR is $44,700 and projected ARR is $536,400.
Multiply qualified monthly recurring revenue by 12. Include stable subscription revenue and exclude one-time setup, consulting, or usage revenue unless it is contractually recurring.
Investor expectations vary by stage, but they usually look for consistent ARR growth, improving retention, credible pipeline, and efficient burn rather than one unusually strong month.
The right ARR threshold depends on market, growth, retention, and capital efficiency. Many SaaS teams use ARR quality and growth consistency as much as the headline number.
Churn lowers the MRR base that gets annualized into ARR. High churn also weakens future compounding and can reduce valuation multiples.
MRR is better for monthly operating control, while ARR is better for annual planning and fundraising narratives. SaaS teams should track both.
| Module | What it shows |
|---|---|
| Current ARR | Annualized recurring revenue from current MRR. |
| Projected ARR | ARR after growth, expansion, and churn impact. |
| Net New MRR | Incremental recurring revenue created this period. |
| Health Score | Growth quality based on expansion and churn balance. |