Annual recurring revenue. The ARR Calculator takes current monthly recurring revenue, monthly mrr growth and returns annual recurring revenue plus arr in 12 months at this growth, mrr in 12 months. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Startup metrics are about the efficiency of growth: how much it costs to win and keep customers, how fast recurring revenue compounds, and how long the cash lasts. Investors read these numbers before they read the pitch. Use the worked example below to check the maths against your own figures.
How the ARR Calculator works
Annual recurring revenue is the annualised value of current subscriptions, the figure SaaS valuations are built on. The projection compounds the monthly growth rate for a year.
Worked example
With the example values (current monthly recurring revenue of $60,000, monthly mrr growth of 5%), the annual recurring revenue is $720,000.00; arr in 12 months at this growth $1,293,016.55, mrr in 12 months $107,751.38. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is annual recurring revenue calculated?
ARR = MRR × 12.
Which figures do I need?
Current monthly recurring revenue, monthly mrr growth. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What do investors consider healthy?
Common benchmarks: LTV:CAC above 3, CAC payback under 12–18 months, net revenue retention above 100%, monthly churn under 2% for SMB and under 1% for enterprise, and at least 12–18 months of runway.
