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SaaS ARR Calculator

The SaaS ARR Calculator converts recurring subscription revenue into annual recurring revenue (ARR), a widely used run-rate measure for subscription businesses. Enter current monthly recurring revenue and any recurring revenue billed on other schedules to estimate the annualized value of the active revenue base.

This calculator is useful for founders, finance teams, and operators preparing board reports, comparing growth periods, or translating a monthly subscription base into an annual figure. ARR is not the same as recognized revenue or cash collected: it excludes one-time services and annualizes recurring contract value. The result can help frame company scale, growth targets, and valuation discussions, but it should be reconciled with the company’s own revenue-recognition and contract policies.

Recurring revenue inputs

USD
USD
USD
%
Result
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Current annual recurring revenue
MRR annualized—
Annual contracts—
Quarterly revenue annualized—
Projected ARR after 12 months—

1. Enter monthly recurring revenue
Use subscription revenue that repeats each month. Exclude setup fees, consulting, hardware, and other one-time charges.

2. Add annual contracts
Enter the recurring annual contract value that is not already included in MRR.

3. Add quarterly recurring revenue
Enter the amount billed each quarter if it is tracked separately from monthly and annual contracts.

4. Set an optional growth rate
Use the expected compound monthly MRR growth rate to view a forward-looking ARR scenario.

5. Review current and projected ARR
Compare the current run rate with the 12-month projection; treat the projection as a scenario rather than booked revenue.

ARR = (MRR × 12) + Annual recurring contract value + (Quarterly recurring revenue × 4)

Projected MRR after 12 months = Current MRR × (1 + monthly growth rate)12. Projected ARR annualizes that projected MRR and then adds separately tracked annual and quarterly recurring amounts. Each revenue stream should be entered once to avoid double counting.

What the result means

The main result is the annualized value of the current recurring revenue base under the entered billing mix.

ARR is a run-rate metric, not a forecast of GAAP revenue, cash receipts, or renewals.

Given: MRR of $50,000, annual contracts of $120,000, and quarterly recurring revenue of $15,000.

Calculation: MRR ARR = $50,000 × 12 = $600,000. Quarterly ARR = $15,000 × 4 = $60,000. Total ARR = $600,000 + $120,000 + $60,000 = $780,000.

Result: Current ARR is $780,000. This expresses the current recurring revenue base on a one-year run-rate basis.

Should annual subscriptions be included in MRR?

Only include them in MRR if your reporting process already converts annual contracts into a monthly recurring amount. Otherwise, enter them in the annual contract field so they are counted once.

Does ARR include usage-based revenue?

Include usage revenue only when it is sufficiently recurring and your organization consistently treats it as recurring revenue. Highly variable or noncommitted usage may be better reported separately.

Why can ARR differ from annual revenue?

ARR annualizes the current recurring base, while annual revenue reflects what was actually recognized during a period. New sales, churn, contract timing, and one-time revenue create differences.

Can monthly growth be negative?

Yes. A negative monthly rate creates a contraction scenario, but the rate cannot be lower than -100% because MRR cannot fall below zero in one step.

How should I use projected ARR?

Use it for scenario planning and target setting. It should not be presented as contracted or recognized revenue unless supported by actual agreements.