ARR Calculator
Turn monthly recurring revenue into annual recurring revenue.
ANNUAL RECURRING REVENUE
$300,000
ARR = MRR × 12. It annualizes your recurring subscription revenue.
What is ARR?
Annual recurring revenue (ARR) is the annualized value of your recurring subscription revenue. It's the headline number investors and founders track for a subscription business.
ARR = MRR × 12
How to read your result
- ARR only counts recurring revenue — exclude one-off fees and services.
- It's simply MRR annualized, so it moves as MRR moves.
- Use ARR for annual contracts and MRR for month-to-month tracking.
- Pair ARR growth with net revenue retention for the full picture.
Frequently asked questions
What's the difference between ARR and revenue?
ARR counts only predictable, recurring subscription revenue annualized — it excludes one-time charges, services, and other non-recurring income.