Free online calculator
ARR Calculator
Annualize a monthly recurring revenue run rate. Includes a worked example, formula and practical FAQs.
Formula: ARR = MRR × 12
How to use the ARR Calculator
Annualize a monthly recurring revenue run rate. Enter MRR after applying a consistent definition of recurring subscription value.
Formula
ARR = MRR × 12.
Worked example
MRR of $2,480 gives $29,760 ARR.
Interpretation and limitations
ARR is a run-rate metric, not a guarantee of next year’s revenue or a substitute for recognized annual revenue. The calculation assumes the monthly recurring level remains unchanged.
ARR questions
Does ARR include one-time setup fees?
Usually these should be excluded from recurring revenue. Keep your metric definition consistent.
Will actual annual revenue equal ARR?
Not necessarily. Churn, new subscriptions, upgrades, discounts and timing can change the actual total.
Continue your calculation
For the next step, use the MRR Calculator or the Customer Churn Rate Calculator. Review each tool’s input definitions before carrying a result into another calculation.
Frequently asked questions
Is this calculator free?
Yes. It runs in your browser and does not require an account.
How should I use the result?
Use the result as a planning estimate and verify business-critical decisions against your source records.