Annual Recurring Revenue (ARR) Calculator
Convert MRR into Annual Recurring Revenue (ARR), quarterly run-rates, and daily recurring velocity. Free instant calculator for SaaS teams.
Calculated Results
Annual Recurring Revenue (ARR)
$3,00,000
Quarterly Run-Rate
$75,000
Daily Recurring Velocity
$821.92/day
ARR = MRR × 12About this tool
Annual Recurring Revenue (ARR) extrapolates your current recurring revenue baseline over a twelve-month horizon, providing the standardized benchmark used by venture investors, private equity buyers, and executive teams to value subscription businesses. Unlike GAAP annual revenue—which records historical transactions recognized over past quarters—ARR provides a forward-looking snapshot of your company's annualized recurring velocity assuming zero future growth or churn. Understanding the direct relationship between MRR and ARR ensures your leadership team communicates fluently with board members and sets realistic annual milestone objectives. Use this calculator to translate monthly recurring figures into annual and quarterly run-rates.
How It Works
- 1Enter your current Monthly Recurring Revenue (MRR).
- 2Inspect your calculated Annual Recurring Revenue (ARR).
- 3View your implied Quarterly Run-Rate and Daily Recurring Revenue rate.
- 4Model how adding incremental MRR translates into annualized company valuation growth.
Formula & Math
Transparent LogicARR = MRR × 12
Worked Practical Example
An email marketing SaaS achieves $41,667 in Monthly Recurring Revenue.
Calculation / Steps
$41,667 × 12 = $500,004
Expected Result
$500,004 Annual Recurring Revenue ($125,001 quarterly run-rate).
Frequently Asked Questions
Does ARR include one-off service or onboarding revenue?+
No. ARR strictly includes normalized, contracted recurring subscription fees. Non-recurring items are excluded.
Is ARR suitable for businesses with month-to-month contracts?+
Yes. In modern B2B SaaS, month-to-month subscriptions are commonly annualized as MRR × 12, provided baseline churn is tracked alongside it.
How does ARR relate to SaaS valuations?+
Software valuations are commonly quoted as a multiple of ARR (e.g. 5x to 10x ARR depending on growth rate, gross margins, and NRR).
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