Annual Recurring Revenue (ARR) Calculator

Annual Recurring Revenue (ARR) calculator for SaaS and subscription businesses

This Annual Recurring Revenue (ARR) calculator is built for one specific job: converting Monthly Recurring Revenue (MRR) into ARR so you can report a clean annual run-rate. If you are a founder, finance lead, or operator in a subscription or contract business, you usually need a single number that answers, “If nothing changes, what recurring revenue does this business generate in a year?” That is ARR.

Using this calculator is intentionally simple. Enter your current MRR and click calculate. The primary output is ARR, which is the annualized version of your recurring monthly revenue. Under that, you also get a few run-rate views that help with planning and communication: quarterly recurring revenue (a common reporting cadence) and daily run-rate (useful for sanity-checking pace and discussing momentum). These are not forecasts. They are just different ways to express the same run-rate based on your current MRR.

If you also know how many active customers are contributing to that MRR, add it as an optional input. The calculator will then show revenue per customer, both monthly (MRR per customer) and annual (ARR per customer). This is useful when you want to compare customer segments, sanity-check pricing, or quickly estimate what revenue impact you might expect from gaining or losing a certain number of customers. If you do not know your exact customer count, leave it blank. You still get ARR and the run-rate breakdown.

Assumptions and how to use this calculator

• This calculator assumes ARR is the annualized run-rate of recurring revenue, computed as ARR = MRR × 12.
• MRR should reflect recurring revenue only (subscriptions, recurring retainers, recurring licenses), not one-time setup fees or non-recurring services.
• The result is not a forecast. It ignores future churn, upgrades, downgrades, discounts, expansion revenue, and new sales.
• If you enter active customers, the calculator assumes MRR is spread across that customer count to estimate average revenue per customer (an average, not a segment view).
• Daily run-rate is calculated using 365 days in a year for a stable estimate (it will not match calendar-month billing exactly).

Common questions

Is ARR the same as revenue on my income statement?

No. ARR is a run-rate metric, not a GAAP or IFRS revenue figure. It answers, “What recurring revenue level am I at right now if things stay the same?” Your accounting revenue depends on recognition rules, billing terms, timing, and what is actually delivered during the period.

What MRR number should I enter?

Use your current recurring monthly revenue. If you track “gross MRR” and “net MRR,” choose the one you report externally. For most internal planning, net recurring revenue is more honest because it reflects discounts and recurring credits. Do not include one-off invoices or project work.

Should ARR include annual contracts billed upfront?

This calculator is locked to the most common practical use: annualizing MRR. If you bill annual contracts upfront, you can still use it by converting that business to an MRR equivalent first (for example, divide an annual contract value by 12 to estimate its monthly run-rate) and then treat the combined run-rate as MRR.

Why does the calculator show quarterly and daily figures?

They are simple translations of the same run-rate. Quarterly recurring revenue helps when reporting by quarter or when comparing to quarterly targets. Daily run-rate helps you sanity-check pace and communicate momentum without implying a forecast.

What does “ARR per customer” mean and when is it useful?

ARR per customer is the average annual recurring revenue per active customer based on your MRR and customer count. It is useful for quick comparisons over time, for estimating the impact of adding or losing customers, and for spotting pricing or mix changes. It is not a replacement for cohort or plan-level analysis.