ARR Calculator
Calculate Annual Recurring Revenue (ARR) from MRR or from active customers and annual contract value.
How to use this tool
- Enter monthly recurring revenue (mrr), customers on annual plans and annual contract value (acv) per annual customer in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your arr (from mrr × 12) and the full breakdown beneath it.
ARR is the annualised view of recurring revenue. Investors, boards, and M&A teams use ARR multiples to value SaaS companies — understanding your ARR trajectory is essential.
Formula
ARR from MRR = MRR × 12
ARR from Annual Contracts = Annual Customers × ACV per Customer
Combined ARR = ARR from MRR + ARR from Annual Contracts
How it works
This calculator produces three ARR figures: the annualised value of monthly recurring revenue (MRR × 12), the ARR locked in by annual contracts (customer count multiplied by per-customer annual contract value), and a combined total of both streams.
Combining the two streams is appropriate only when the monthly and annual customer bases are mutually exclusive; adding them together for overlapping populations would double-count revenue. Use the combined figure only if your monthly and annual customer cohorts do not overlap.
Worked example
Worked example
- MRR = $9,800; ARR from MRR = $9,800 × 12 = $117,600.
- Annual customers = 50; ACV = $1,200 each.
- ARR from annual contracts = 50 × $1,200 = $60,000.
- Combined ARR = $117,600 + $60,000 = $177,600.
ARR from MRR = $117,600; ARR from annual contracts = $60,000; combined ARR = $177,600.
Key terms
- ARR (Annual Recurring Revenue)
- The annualised value of all active recurring subscription contracts; the primary top-line metric for SaaS businesses.
- MRR (Monthly Recurring Revenue)
- Predictable monthly subscription revenue; multiplied by 12 to annualise.
- ACV (Annual Contract Value)
- The total value of a single customer contract normalised to one year, excluding one-time fees.
- Annualisation
- Scaling a shorter-period metric (such as monthly revenue) to a full-year equivalent; assumes the current rate holds for 12 months.
Frequently asked questions
- What is the difference between ARR and MRR?
- MRR (Monthly Recurring Revenue) is the monthly view; ARR (Annual Recurring Revenue) is the annualised view. ARR = MRR × 12. Both measure the same recurring revenue stream but at different cadences.
- Does ARR include one-time fees?
- No. ARR only includes normalised, predictable recurring revenue. One-time implementation fees, professional services, and non-recurring charges are excluded because they do not recur.