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Annual Recurring Revenue Calculator for SaaS ARR Growth

Convert normalized monthly recurring revenue into ARR, compare it with a previous recurring-revenue baseline, and calculate the MRR required to reach your target ARR.

SaaS ARR Inputs

Use one currency for all monetary inputs. $ labels do not convert currencies.

Start with monthly-normalized recurring revenue. Do not enter one-time invoices, setup fees, services revenue or total cash collected.

Monthly-normalized recurring revenue from active paid subscriptions. Annual and quarterly contracts should already be converted to monthly equivalents.
Prior ARR measured with the same recurring-revenue definition, currency and subscription-status rules. This value powers ARR change and growth.
Annual recurring-revenue goal used to calculate target MRR, the remaining ARR gap and target attainment.
Current ARR-
Quarterly Recurring Run Rate-
ARR Change-
ARR Growth Rate-
Target MRR Required-
ARR Gap to Target-
Target Attainment-
ARR Signal-

Example: SaaS ARR Run Rate

Current normalized MRR: $112,000

Previous ARR: $1,200,000

Target ARR: $1,500,000

Current ARR: $1,344,000

Quarterly recurring run rate: $336,000

ARR change: $144,000

ARR growth: 12.0%

Target MRR required: $125,000

ARR gap: $156,000

Target attainment: 89.6%

This calculator uses the common SaaS convention of annualizing normalized MRR. ARR is an operating run-rate metric, not recognized revenue, cash collected or total contract value.

ARR Calculator Formulas

Current ARR = Current Normalized MRR x 12Quarterly Recurring Run Rate = Current Normalized MRR x 3ARR Change = Current ARR - Previous ARRARR Growth Rate = ARR Change / Previous ARR x 100Target MRR Required = Target ARR / 12ARR Gap to Target = Target ARR - Current ARRTarget Attainment = Current ARR / Target ARR x 100

Normalize first: Enter monthly-normalized recurring revenue before multiplying by 12.

Comparable baseline: Previous ARR must use the same revenue definition as current ARR.

Target planning: Target MRR is the recurring monthly run rate corresponding to the ARR goal, not a one-month sales quota.

What to Enter in This ARR Calculator

Current MRR: Active monthly-normalized recurring subscription revenue. Previous ARR: A comparable earlier annual recurring run rate. Target ARR: The recurring annual scale you are planning toward. Exclude: One-time setup fees, services, hardware, taxes and nonrecurring invoices. Keep consistent: Currency, discounts, subscription statuses and normalization rules.

Use the ARR guide for definitions, formula methodology, ARR vs MRR, ARR vs revenue, and CARR comparisons.

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SaaS & Software
Need the ARR formula, MRR conversion or ARR vs revenue explanation?
 Read the ARR guide for annual recurring revenue methodology, MRR vs ARR, ARR growth, CARR, bookings, contract value and reporting boundaries. 
Read the ARR guideBrowse all guides
ARR Calculator Frequently Asked Questions
 These answers focus on using the calculator correctly. The complete ARR methodology is covered in the guide. 
 Enter current monthly-normalized recurring revenue from active paid subscriptions. Normalize annual and quarterly recurring contracts to monthly equivalents first, and exclude one-time revenue. 
 Previous ARR provides the comparison baseline for ARR change and ARR growth rate. Use a value measured with the same currency, subscription statuses and recurring-revenue rules as the current period. 
 Yes, provided the subscriptions are already normalized into monthly recurring revenue. For example, a $1,200 annual recurring contract contributes $100 of MRR before the calculator annualizes the total. 
 It is the monthly recurring run rate corresponding to the entered ARR target. It is a net recurring target, not automatically the amount of new sales required because churn and expansion can also change MRR. 
 ARR annualizes recurring subscription value. Cash timing can differ because customers may prepay, receive credits or pay on different billing schedules, while ARR keeps the recurring run rate normalized. 
 Move between recurring-revenue scale, retention and unit economics without mixing their formulas. 
 MRR Calculator - calculate the monthly recurring base behind ARR  NRR Calculator - isolate existing-customer revenue retention  SaaS Churn Calculator - measure customer and revenue loss  SaaS LTV:CAC Calculator - evaluate recurring unit economics  SaaS ROI Calculator - analyze buyer-side subscription value 
Annual Recurring Revenue Calculator Disclaimer: This calculator annualizes monthly-normalized recurring subscription revenue for operating and planning analysis. ARR is not GAAP revenue, booked contract value, cash collected or a guarantee of future revenue. Billing-system rules, discounts, credits, usage billing, foreign exchange and subscription status policies can change reported ARR.