ARR calculator: turn MRR into an annual run rate

Version 1.0.0

If you already know your monthly recurring revenue (MRR), multiply it by 12 to get its annual recurring revenue (ARR) run rate: ARR = MRR × 12. For example, $10,000 in MRR gives $120,000 in ARR.

This result extends your current MRR to a yearly rate. It isn't a promise that you'll collect $120,000 over the next 12 months. Enter your known MRR and choose its currency to calculate the amount.

Monthly recurring revenue (MRR) unit

Choose the currency of your MRR. Changing the currency won't convert the amount.

How to use this calculator

  1. Find your current MRR total in a billing report or spreadsheet. If some subscriptions bill yearly or every few months, their prices must already be expressed as monthly amounts.
  2. Choose the currency that MRR total uses. Enter digits and, if needed, up to two decimal places. Leave out commas and currency symbols. The selector labels the amount in your chosen currency; it does not convert it.

Enter 0 if your MRR really is zero. If you don't know your MRR, check your source first rather than entering zero to get an answer.

What belongs in the MRR input

Enter a monthly total, even if some customers pay yearly. For example, a $1,200 annual subscription contributes $100 to MRR after its price is divided by 12. Chargebee gives the same example in its MRR guidance.

Use the same rules for every subscription. Check whether your source MRR is net of recurring discounts, whether it includes recurring add-ons, and how it handles past-due or non-renewing subscriptions. Don't automatically add one-time fees or tax just because they appear on an invoice. Check the source rules before including services or usage charges. ChartMogul, for example, counts past-due subscriptions and offsets discounts.

What annualized ARR means

ARR treats the MRR you enter as the monthly rate at one point in time and expresses it as an annual rate. It does not count cash collected or revenue already earned, and it does not predict renewals, cancellations, or price changes. A later MRR total could produce a different ARR. Vertex, for example, defines its ARR from MRR at the end of a reporting period. This calculator uses the MRR snapshot you enter.

When reported ARR differs

A billing report or company filing may use a different ARR definition. Bentley Systems, for example, includes annualized recurring contracts and some subscriptions whose charges depend on usage. If your result differs from a report, compare the source MRR rules and the date of its snapshot. This calculator can annualize your entered MRR, but it cannot check what the source counted.

If you need to calculate MRR from active plan counts, prices, and billing periods, use the MRR calculator. If you have a month's starting MRR and its changes, use the SaaS metrics calculator to find ending MRR first.