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ARR Calculator

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

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What is annual recurring revenue (ARR)?

Annual Recurring Revenue (ARR) is a key metric used by subscription-based businesses to measure their predictable revenue streams. It represents the total value of contracted recurring revenue that a company expects to receive within a year. ARR excludes one-time fees or variable charges, focusing solely on the recurring aspect of revenue. It provides insight into the financial health and stability of a business by demonstrating the revenue that can be expected to continue in the future.

ARR is crucial for investors and stakeholders as it offers a clear picture of the company's revenue-generating potential and growth trajectory over time. Tracking ARR helps businesses evaluate the effectiveness of their subscription models, forecast future revenue, and make informed decisions about resource allocation and growth strategies.

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