ARR Calculator
Annualise your Monthly Recurring Revenue to see the run-rate investors and boards care about.
Your total recurring revenue this month.
This free ARR calculator annualises your monthly recurring revenue into the run-rate that boards and investors track. Enter your current MRR and it returns your annual recurring revenue, plus what that works out to per day.
ARR (annual recurring revenue) is the normalised yearly value of your subscriptions — the run-rate of your recurring business if nothing changed for twelve months. It is the common language for annual contracts and fundraising, where a single yearly figure is easier to reason about than a moving monthly number.
How to calculate ARR
ARR is the simplest of the core SaaS metrics: multiply your MRR by twelve. Because it is built from MRR, the same rule applies — only recurring subscription revenue counts. Exclude one-off fees, professional services and usage overages so your run-rate reflects revenue you can actually rely on next year.
ARR is a forward-looking snapshot, not recognised (GAAP) revenue. It assumes today's subscriptions continue for a year and ignores one-time income, so it will not match your income statement — use it for run-rate and planning, not accounting.
ARR = MRR × 12
An MRR of $1,980 is $1,980 × 12 = $23,760 ARR, or about $65 per day. Grow MRR to $5,000 and ARR becomes $60,000 without any change to how you count it.
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