ARR Calculator
Calculate annual recurring revenue and project it forward at a growth rate.
What the ARR Calculator does
Annual recurring revenue annualises the current subscription run rate. It is the headline metric for subscription businesses because it represents predictable forward revenue rather than historical sales.
Formula
ARR = MRR × 12ARR = Customers × Average annual contract valueProjected ARR = ARR × (1 + Growth)^Years
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Calculate from | one of 2 options | Yes | — |
| Monthly recurring revenue | selected currency | In some modes | Accepts more than 0. Shown Calculate from is Monthly recurring revenue. |
| Number of customers | number | In some modes | Accepts 1 or more. Shown Calculate from is Customer count and average value. |
| Average annual contract value | selected currency | In some modes | Accepts more than 0. Shown Calculate from is Customer count and average value. |
| Expected annual growth | % | Optional | — |
| Project forward | years | Optional | Accepts 0 or more, up to 50. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Calculate from and Currency.
- Fill in the remaining inputs the form shows for your choice.
- Optionally add Expected annual growth and Project forward.
- Select Calculate.
Worked example
$95,000 MRR growing 40% a year, projected 3 years out.
- MRR
- 95000
- Growth
- 40
- Years
- 3
ARR $1,140,000 today, reaching about $3,128,000 in three years.
Frequently asked questions
What is the difference between ARR and revenue?
ARR is a forward-looking run rate of recurring contracts. Revenue is what you actually recognised historically, including non-recurring items.