Annual Recurring Revenue (ARR) is the value of your subscription contracts normalized to a one-year period. For a SaaS company, ARR = MRR × 12. It excludes one-time fees, professional services, or non-recurring revenue.

What is the difference between ARR and MRR?

MRR (Monthly Recurring Revenue) is the monthly snapshot of recurring revenue; ARR annualizes it (ARR = MRR × 12). Investors and SaaS benchmarks commonly use ARR for year-over-year comparisons.

How is ARPU calculated?

ARPU (Average Revenue Per User) = MRR ÷ total active subscribers. It tells you how much each customer contributes on average each month.

What does the churn impact show?

Enter your monthly churn rate (percentage of subscribers who cancel each month) and the tool estimates how much ARR you lose annually due to churn: Churned ARR ≈ ARR × monthly churn rate × 12.

Does this include expansion revenue?

This calculator focuses on new and existing subscription ARR. Expansion MRR (upgrades, seat additions) can be modeled by adding a separate plan row representing the expansion cohort.

Can I use this for annual plans billed upfront?

Yes. Enter the annual price divided by 12 as the monthly price for that plan, then multiply by subscriber count — the tool converts to ARR correctly.

ARR Calculator

Name: ARR Calculator
Availability: InStock
Author: Nham Vu

Instantly calculate ARR from MRR or individual subscription plans — plus growth rate, ARPU, and churn impact.

Input Mode

Monthly Recurring Revenue (MRR)

MRR ($)

Growth & Churn (optional)

Monthly Growth Rate (%)

Monthly Churn Rate (%)

Projection Period (months)

Results

Enter your MRR or subscription plans to see results.

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Summary

Instantly calculate ARR from MRR or individual subscription plans — plus growth rate, ARPU, and churn impact.

How it works

Choose the MRR mode to enter a single MRR figure, or switch to Subscription mode to add multiple plans.
In MRR mode, type your current Monthly Recurring Revenue — ARR is MRR × 12.
In Subscription mode, add each plan with its price and number of active subscribers.
Optionally enter a monthly growth rate and churn rate to project future ARR.
Results update in real time: ARR, MRR, ARPU, projected ARR, and net ARR after churn.

Use cases

Quickly convert MRR to ARR for investor decks and board reports.
Model ARR across multiple pricing tiers before a pricing change.
Estimate projected ARR after a growth or expansion hire.
Understand how churn rate shrinks your annual revenue.
Benchmark ARPU across subscription cohorts.
Prepare SaaS metrics for due diligence or fundraising.
Stress-test revenue with different churn and growth scenarios.
Validate ARR targets against current subscriber counts.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu