1. Enter current MRR
Use the current recurring monthly revenue base.
2. Enter prior ARR
Choose a comparable earlier ARR value, such as the same month one year ago.
3. Review current ARR
The calculator annualizes the current monthly run rate.
4. Compare growth and increase
Use both the percentage change and dollar change for context.
5. Keep definitions aligned
Apply the same inclusions, exclusions, and exchange-rate approach to both periods.
Where:
Assumptions: Current monthly revenue is representative of the annual run rate. No seasonality, churn, expansion, or currency movement is forecast.
Current annual recurring revenue run rate.
Use the result as a planning estimate based on the assumptions above.
Given: Current MRR is $310,000 and ARR one year earlier was $3,000,000.
Calculation: Current ARR: $310,000 × 12 = $3,720,000. Increase: $3,720,000 − $3,000,000 = $720,000. Growth: $720,000 ÷ $3,000,000 × 100 = 24%.
Result: The business is running at $3.72 million ARR, 24% above the comparison baseline.
Not directly. Convert it to an equivalent monthly amount under a consistent policy before using this calculator.
ARR is an operating metric, not a substitute for recognized revenue reported under accounting standards.
The comparison reveals recurring-revenue momentum at an annualized scale.
Allocate the recurring contract value across twelve months when that matches your MRR policy.
It can be less informative when revenue is highly seasonal, non-recurring, usage-variable, or concentrated in short-term contracts.