Finance & Startup Tools

Annual Recurring Revenue (ARR) Calculator

Calculate Annual Recurring Revenue from monthly recurring revenue or multi-year contracts with instant SaaS valuation estimates.

How It Works

Converts monthly recurring revenue run rates and multi-year subscription contracts into standardized Annual Recurring Revenue metrics.

Formula & Technical Methodology

ARR = MRR · 12 or ARR = Total Multi-Year Contract Value / Contract Duration in Years.

When Should You Use This Tool?

Enterprise sales tracking, investor pitch decks, and annual SaaS budget planning.

Practical Example

An enterprise SaaS generating $85,000 MRR operates at an ARR run rate of $1,020,000 ($1.02M ARR).

Frequently Asked Questions

What is the relationship between ARR and MRR?
ARR is simply the annual normalization of your MRR (ARR = MRR * 12).