# ARR Calculator

> ARR: ARR = MRR × 12. Methodology stated, your own inputs only.

Page: https://freecalculator.tech/tools/arr-calculator
Last reviewed: 2026-10-15

## Formula

ARR = MRR × 12.

- Methodology: run-rate ARR — current normalised monthly recurring revenue annualised.
- Exclude one-time fees, usage spikes and services.
- ARR is a run rate, not revenue already earned or a forecast.
- ARR = MRR × 12.
- Inputs used: Currency (symbol only, never converted), Monthly recurring revenue (MRR).

## Inputs

- Currency (symbol only, never converted)
- Monthly recurring revenue (MRR)

## Worked example: A SaaS company

$42,500 MRR.
1. 42,500 × 12 = $510,000.

## Common questions

### Is ARR the same as annual revenue?

No. It's a run rate of current subscriptions; recognised revenue for the year can differ.

### How do annual plans count?

Divide each annual fee by 12 for MRR first, or add annual fees directly to ARR. Check the formula, example, and limitations on this page before using the result for a real sales decision.

### Include trials?

No — only paying recurring contracts. Check the formula, example, and limitations on this page before using the result for a real sales decision.

### How do I use the ARR Calculator?

Enter the required values for Currency (symbol only, never converted), Monthly recurring revenue (MRR). The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the ARR Calculator use?

ARR = MRR × 12. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the ARR Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Run rate only.
- Excludes non-recurring revenue.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this arr calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- OpenStax — https://openstax.org/books/principles-marketing/pages/1-unit-introduction

## Cite this page

- APA: Free Calculator. (2026, October 15). ARR Calculator. https://freecalculator.tech/tools/arr-calculator
- MLA: "ARR Calculator." Free Calculator, 15 Oct. 2026, https://freecalculator.tech/tools/arr-calculator.
- Link: ARR Calculator — Free Calculator, https://freecalculator.tech/tools/arr-calculator