ARR Calculator
Convert monthly recurring revenue into ARR and see your annual run rate the way investors read it.
Annual recurring revenue
What it measures
ARR is MRR multiplied by twelve: the yearly value of your current subscription base if nothing changed. It is a run rate, not a forecast.
Why it matters
ARR is the headline number in fundraising and valuation. Multiples get quoted against it, so knowing it precisely matters.
A worked example
26,820 in MRR is 321,840 ARR. A fund quoting a 8x multiple is talking about 2.6 million on that base.
How to read and improve it
ARR grows exactly as MRR does. Watch net revenue retention: past 100 percent, ARR grows even with zero new sales.
Frequently asked questions
Is ARR the same as revenue?
No. Recognised revenue follows accounting rules. ARR is a run rate snapshot of the subscription base.
Do services count in ARR?
No. Only recurring subscription value belongs in ARR.
More in SaaS metrics: SaaS CAC Calculator · Customer Lifetime Value Calculator · Churn Rate Calculator
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