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Calculate Annual Recurring Revenue from MRR or customers × ARPU × 12 — see ARR, MRR and per-month breakdown.
Calculate Annual Recurring Revenue from MRR or customers × ARPU × 12 — see ARR, MRR and per-month breakdown.
Enter values above and click Calculate — results will appear here with the formula explained.
Annual Recurring Revenue (ARR) annualizes MRR to show yearly subscription scale. It is MRR times 12, or customers times ARPU times 12. Investors use ARR for valuation and growth rate because it smooths monthly noise and matches annual planning. ARR should only include recurring contracts (annual, monthly) — exclude one-time services, implementation or variable usage that does not recur.
To use the ARR Calculator, enter MRR directly or customers and ARPU. The tool shows ARR, MRR, and implied monthly and daily recurring rates. Compare contracts: 120 customers at $49 ARPU is $5,880 MRR and $70,560 ARR. A $1,000 expansion in MRR lifts ARR by $12,000. Use the example and FAQs to avoid annualizing one-time revenue.
ARR Calculator: Calculate Annual Recurring Revenue from MRR or customers × ARPU × 12 — see ARR, MRR and per-month breakdown. Formula: ARR = MRR × 12. Example: $5,880 MRR × 12 = $70,560 ARR.
Annual Recurring Revenue (ARR) annualizes MRR to show yearly subscription scale. It is MRR times 12, or customers times ARPU times 12. Investors use ARR for valuation and growth rate because it smooths monthly noise and matches annual planning. ARR should only include recurring contracts (annual, monthly) — exclude one-time services, implementation or variable usage that does not recur.
To use the ARR Calculator, enter MRR directly or customers and ARPU. The tool shows ARR, MRR, and implied monthly and daily recurring rates. Compare contracts: 120 customers at $49 ARPU is $5,880 MRR and $70,560 ARR. A $1,000 expansion in MRR lifts ARR by $12,000. Use the example and FAQs to avoid annualizing one-time revenue.
$5,880 MRR × 12 = $70,560 ARR. Or 120 customers × $49 ×12 = $70,560 ARR. Adding 10 customers lifts ARR by $5,880, or $70,560 to $76,440.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
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