Annual recurring revenue (ARR)
ARR annualizes your monthly recurring revenue to provide a clear yearly view of subscription revenue. Formula: ARR = MRR × 12.
Inputs
Enter your current monthly recurring revenue.
Summary
Annualized view based on current monthly recurring revenue.
ARR
$69,600.00
MRR
$5,800.00
Multiplier
× 12
ARR basics
ARR is a simple way to express subscription revenue on an annual basis for planning, valuation, and reporting. It assumes your current MRR persists across 12 months.
What each input means
- MRR: Current monthly recurring revenue from active subscriptions.
- ARR: Annualized revenue,
MRR × 12.
How to use the calculator
- Enter MRR from your billing system or MRR calculator.
- Use ARR for annual budgets and high‑level planning.
- Pair with growth rate to model future ARR scenarios.
Interpreting results
- Today’s ARR: $69,600.00 based on MRR of $5,800.00.
- ARR is sensitive to churn and expansion; model net revenue retention to project changes.
Common pitfalls
- Including one‑time fees—ARR should reflect recurring revenue only.
- Ignoring seasonality—use averages if MRR fluctuates materially.
Related metrics
- MRR (monthly recurring revenue)
- Growth rate (period and CAGR)
- Net revenue retention