SaaS & retention
Annual Recurring Revenue Calculator
Annualize a current monthly recurring revenue run rate without assuming future growth or retention changes.
Use this to convert an established MRR snapshot to an annual run rate. Use MRR first if you only have customers and monthly pricing.
What the result means
ARR expresses the current recurring monthly base over twelve months. It is a run-rate metric, not booked annual contract value, historical annual revenue, or a forecast of the next year.
The formula
Monthly recurring revenue * 12
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Current monthly recurring revenue (currency per month)
- 12,250
ARR (input currency per year, run rate): 147,000.00
MRR of 12,250 annualizes to an ARR run rate of 147,000.
How to use this calculator
- Confirm the source MRR uses a recurring-only revenue policy.
- Take the MRR total at a clearly stated snapshot date.
- Multiply by twelve and label the result as an annualized run rate.
Why this number matters
Annualizing the recurring base provides a common scale for subscription businesses without confusing different billing frequencies.
Input definitions
- Current monthly recurring revenue (currency per month)
- Normalized recurring monthly revenue at one snapshot date, excluding nonrecurring charges.
Assumptions and limitations
- Assumes the current monthly base persists; no new sales, churn, or expansion are projected.
- May differ from committed annual recurring revenue definitions used in contracts.
- Not a substitute for recognized revenue or a cash-flow forecast.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
Last updated .