This calculator annualizes a Series A company’s monthly recurring revenue and can also derive ARR directly from active customers and average monthly recurring revenue. It reports the monthly run-rate, ARR, and year-over-year change against an optional prior ARR value.
The metric is commonly used for planning and valuation discussions, but annualized recurring revenue is not the same as booked revenue, cash collections, or a GAAP revenue forecast. Use a consistent recurring-revenue policy and remove one-time or usage amounts that are not contractually predictable.
1. Enter current MRR
Use normalized monthly recurring revenue under the company’s reporting policy.
2. Add prior ARR
Enter ARR from the comparable prior-year period to calculate growth; use zero if unavailable.
3. Review annualized revenue
ARR is calculated as current MRR multiplied by 12.
4. Use the run-rate carefully
Treat ARR as a snapshot metric rather than guaranteed future revenue.
ARR = MRR × 12 Year-over-year ARR growth = (Current ARR − Prior ARR) ÷ Prior ARR × 100
The annualization assumes the current monthly recurring revenue level remains constant for twelve months.
The main result is the annualized recurring revenue run-rate implied by current MRR.
Contract changes, churn, expansion, and seasonality can make actual future revenue differ.
Given: Current MRR = $500,000 and prior-year ARR = $4,800,000.
Calculation: ARR = $500,000 × 12 = $6,000,000. Growth = ($6,000,000 − $4,800,000) ÷ $4,800,000 = 25%.
Result: Current ARR is $6 million, up 25% from the comparison value.
Yes, when contracts are recurring and normalized consistently, but this page annualizes MRR for a comparable run-rate.
Include only the recurring, predictable component under your documented metric policy.
ARR holds the current run-rate constant and does not model future churn, expansion, or new sales.
Use the ARR reported at the same point one year earlier for a year-over-year comparison.
ARR is a recurring run-rate metric, while annual revenue is the amount recognized over an actual reporting year.