SaaS ARR Calculator

Use this calculator to estimate annual recurring revenue based on MRR.

What this calculator does

The SaaS ARR calculator converts monthly recurring revenue into annual recurring revenue.

It is useful for:

• SaaS reporting
• investor communication
• valuation metrics
• annual forecasting

ARR Formula

ARR = MRR × 12

Where:

• MRR = monthly recurring revenue
• ARR = annual recurring revenue

Example calculation

If:

• MRR = 10000

Then:

• ARR = 10000 × 12
• ARR = 120000

What is ARR?

ARR stands for annual recurring revenue.

It shows the annualized value of recurring subscription revenue.

Why ARR matters

ARR helps SaaS businesses:

• measure scale
• support fundraising discussions
• forecast annual revenue
• compare long-term growth

When to use this calculator

Use this calculator when you want to:

• annualize MRR
• prepare SaaS reports
• compare yearly recurring revenue
• support strategic planning

Common mistakes

Common mistakes include:

• including one-time fees
• mixing non-recurring revenue with ARR
• not adjusting for churn or contract changes

ARR vs MRR

These are closely related.

• ARR is yearly recurring revenue
• MRR is monthly recurring revenue

Related calculations

You may also want to use:

• SaaS MRR Calculator
• LTV Calculator
• Revenue Growth Calculator

FAQs

What is ARR?

ARR is the annualized value of recurring subscription revenue.

How do you calculate ARR?

ARR = MRR × 12.

Why is ARR important?

It helps SaaS businesses measure scale and communicate recurring revenue performance.

What is the difference between ARR and MRR?

ARR is annual recurring revenue, while MRR is monthly recurring revenue.