ARR Calculator

Calculate your annual recurring revenue (ARR) from MRR, customers, and pricing.

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ARR Calculation

Enter your subscription metrics to calculate ARR.

Annual recurring revenue
$0
MRR: $0
Monthly recurring revenue (MRR)
$0
Annual recurring revenue (ARR)
$0
Net monthly churn ($)
$0
Net new MRR (monthly)
$0
Customer lifetime value (LTV)
$0
CAC payback period (months)
0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Number of customers500
Average revenue per customer ($/mo)100
Monthly churn rate (%)3%
Monthly new customers20
ResultValue
Annual recurring revenue$600,000
Monthly recurring revenue (MRR)$50,000
Annual recurring revenue (ARR)$600,000
Net monthly churn ($)$1,500/mo
Net new MRR (monthly)$500/mo
CAC payback period (months)34 mo

Values shown are produced by this page in your browser; change any input to update them.

How to use the ARR Calculation

  1. Number of customers — default 500
  2. Average revenue per customer ($/mo) — default 100
  3. Monthly churn rate (%) — default 3%
  4. Monthly new customers — default 20
  5. Press Calculate to update the results instantly.

Frequently asked questions

ARR = MRR × 12. If you bill annually, ARR is simply the sum of active annual contracts.
Recurring subscription revenue only. One-off setup fees, services and hardware do not belong in ARR.
Because it is predictable. Recurring revenue can be forecast, which is why SaaS valuations are usually expressed as a multiple of ARR.

Sources & references