The Founder ARR Calculator estimates annual recurring revenue by annualizing current MRR and adding any recurring annual contract value not already included in MRR. It provides a consistent run-rate view rather than a forecast of future booked or recognized revenue.
Founders and operators can use ARR to compare recurring scale across reporting periods, communicate a current revenue run rate, and connect monthly subscription performance with annual planning. The result assumes the present recurring revenue level continues for twelve months and excludes one-time revenue.
1. Enter current net MRR
Use recurring monthly revenue after recurring discounts and credits.
2. Add separate annual recurring value
Enter annual contract value only when it has not already been normalized into MRR.
3. Review ARR
The main result annualizes the current recurring base.
4. Check the monthly equivalent
Use the detail row to confirm the ARR converts back to a reasonable monthly run rate.
ARR = Current net MRR × 12 + Additional annual recurring contract value.
ARR is the annualized value of recurring subscriptions at the current run rate, not a guarantee of revenue that will be earned during the next year.
Do not add annual contracts here if their monthly equivalent is already included in MRR, or the same revenue will be counted twice.
Given: Current net MRR = $16,050 and separate annual recurring contracts = $24,000.
Calculation: MRR annualized = $16,050 × 12 = $192,600. ARR = $192,600 + $24,000 = $216,600.
Result: The current annual recurring revenue run rate is $216,600.
Not necessarily. It is usually a run-rate metric based on the current recurring base and does not automatically model growth, churn, or price changes.
Yes. Convert recurring quarterly value to an annual amount by multiplying by four, provided it is not already included in MRR.
Only the recurring and reasonably predictable portion should be included. Highly variable or one-time usage is often reported separately.
ARR is a management metric, while accounting revenue follows recognition rules and service delivery periods.
Include a contract either through MRR annualization or as separate annual recurring value, but not both.