ARR Calculator

Calculate the annual recurring revenue (ARR) of your business.

Although ARR is commonly calculated by taking the MRR figure and multiplying it by 12, the calculation below accounts for expansion revenue and churn.

Your calculation result will show up here.

Your ARR is:

What is annual recurring revenue (ARR)?

ARR describes recurring subscription revenue on an annual basis. This calculator combines a base annual subscription figure with expansion and churn adjustments.

How to use this tool

ARR = annual subscription revenue + recurring expansion revenue − churned revenue. Annualize every input and include each adjustment only once. Exclude one-time setup fees and other nonrecurring sales.

Example

A $120,000 annual base, $24,000 in annual expansion, and $12,000 lost to churn gives $132,000 ARR.

Understanding your result

If your base already includes expansion and churn, do not add or subtract them again. ARR is a recurring-revenue measure, not cash collected or accounting revenue recognized during the year.

Related tools: MRR Calculator · NRR Calculator.

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