SaaS
ARR Calculator
Calculate Annual Recurring Revenue — the annualized value of your subscription contracts.
$
Your ARR
ARR
$237,600
Annual recurring revenue is $237,600 based on current MRR.
$19,800 × 12
MRR
$19,800
Daily Run Rate
$651
Weekly Run Rate
$4,569
Formula
ARR = MRR × 12
MRRMonthly Recurring Revenue
Example Calculation
MRR of $19,800.
ARR = $19,800 × 12 = $237,600
How to Use ARR
ARR is the standard metric for investor reporting and annual planning in subscription businesses.
Common Mistakes
- ✕Including one-time revenue in ARR.
- ✕Not normalizing annual contracts.
- ✕Treating ARR as a forecast rather than a snapshot.
Frequently Asked Questions
ARR annualizes recurring subscription revenue. Total revenue includes one-time fees, professional services, and non-subscription income that ARR excludes.
Disclaimer: Results produced by this calculator are estimates for informational purposes only and do not constitute financial, business, or professional advice. Actual results will vary based on your specific business conditions, market factors, and other variables. Always consult qualified professionals before making business decisions.