This calculator converts pre-seed monthly recurring revenue into an annual recurring revenue run rate. It also supports separately entered annual recurring contracts that are not included in the monthly amount.
ARR is useful for presenting recurring revenue on an annualized basis and comparing growth across companies with different billing schedules. It is a run-rate metric, not a forecast of recognized revenue or cash collections for the next twelve months.
1. Enter current MRR
Use normalized recurring revenue for the current month.
2. Add separate annual recurring contracts
Enter annual recurring value not already represented in MRR.
3. Avoid double counting
Do not enter the same customer contract in both fields.
4. Review ARR
Use the annualized total as a current run-rate snapshot.
5. Compare periods consistently
Apply the same inclusion rules when tracking growth over time.
ARR from MRR = Monthly recurring revenue × 12
Total ARR = ARR from MRR + Other annual recurring revenue
The calculation assumes the current recurring level remains unchanged for twelve months. It does not model future churn, expansion, new sales, or seasonality.
The result is the annualized value of the current recurring revenue base.
ARR should not be interpreted as guaranteed next-year revenue.
Given: $6,500 MRR and $12,000 of separate annual recurring contracts.
Calculation: ARR from MRR = $6,500 × 12 = $78,000. Total ARR = $78,000 + $12,000 = $90,000.
Result: Pre-seed ARR is $90,000.
ARR expresses the current monthly recurring level on a twelve-month basis. It is an annualized run rate, not a growth forecast.
No. Implementation, consulting, and other nonrecurring revenue should generally be excluded from ARR.
Use the recurring value attributable to one year, not the total contract value across all years.
Yes. Upfront annual billing can produce cash collections above monthly or annualized recognized recurring revenue.
ARR includes recurring run-rate revenue, while annual revenue is the amount recognized during a completed accounting period and may include nonrecurring items.