Monthly Recurring Revenue (MRR) & Annual Recurring Revenue (ARR) Calculator

Compute Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) from a monthly subscription amount. Includes definitions, examples, sources, and author/contact details for transparency.

Page updated:: Jul 14, 2026
Tool version:: v1.1.0

Overview

Quickly convert Monthly Recurring Revenue (MRR) to Annual Recurring Revenue (ARR).

Definitions: MRR = total predictable monthly subscription revenue. ARR = MRR × 12 (annualized recurring revenue).

Monthly Recurring Revenue (MRR) amount

Enter the total monthly recurring revenue (MRR) in your currency. Examples: total subscription revenue per month, or average monthly run-rate. · Min 0 · Max 10000000

Include non-recurring revenue in MRR calculation?

Typically exclude one-time or professional services revenue from MRR.

Results

MRR (Monthly Recurring Revenue)

$1,000.00

ARR (Annual Recurring Revenue)

$12,000.00

How to read the result

What it means: The displayed value is an estimate based on your inputs. It represents the calculated scenario under current assumptions, not a guaranteed amount.
Next step: Use the result as a starting point. Adjust parameters to compare scenarios and validate with a professional when needed.
Calculation limits: The model uses simplified formulas and cannot account for all variables in your specific case (local regulations, personal conditions, temporal changes).

Methodology

This calculator treats the input amount as the monthly recurring revenue (MRR).

ARR is computed by annualizing MRR: ARR = MRR × 12.

Exclude one-time or non-recurring revenue (e.g., setup fees, professional services) from the MRR input to avoid overstating ARR.

Glossary+

MRR (Monthly Recurring Revenue): Predictable revenue expected every month from subscriptions or recurring contracts.
ARR (Annual Recurring Revenue): MRR multiplied by 12; the annualized run-rate of recurring revenue.
One-time revenue: Revenue from single events (setup fees, professional services) that should not be included in MRR.

Key takeaways

Enter your recurring monthly revenue (MRR) to get ARR = MRR × 12.

Ensure only recurring revenue is included for accurate ARR results.

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Useful links

Worked examples

Single product SaaS

A SaaS company with $1,000 in MRR from subscriptions.

Interpretation

With $1,000 MRR, ARR is $12,000 (predictable subscription revenue per year).

Multiple customers aggregated

Aggregate monthly subscription revenue across customers equals $25,500 MRR.

Interpretation

ARR = $306,000; useful for revenue forecasting, valuation metrics, and growth tracking.

Exclude one-time fees

If $2,000 of the monthly reported bookings are one-time, adjust MRR input to exclude those before calculating ARR.

Interpretation

Only recurring revenue should be annualized; one-time fees distort ARR.

Frequently asked questions

How is ARR calculated from MRR?

ARR = MRR × 12. Use only recurring subscription revenue for MRR. Exclude one-time charges and professional services.

What counts as MRR?

MRR includes recurring subscription fees, recurring add-ons, and upgrades/downgrades averaged monthly. It excludes one-off payments and variable usage billed irregularly unless you normalize them into a recurring monthly figure.

Can I include annual prepaid subscriptions?

For annual prepaid subscriptions, divide the total prepaid amount by 12 to convert to an equivalent monthly recurring amount before entering it as MRR.

Why is ARR useful?

ARR is used for forecasting revenue, evaluating growth rate, benchmarking, and valuation for subscription businesses.

Sources & references

Investopedia — Annual Recurring Revenue (ARR): https://www.investopedia.com/terms/a/annual-recurring-revenue-arr.asp
SaaStr — SaaS Metrics: MRR, ARR and More: https://www.saastr.com

Quality & oversight

Author: Ugo Candido, MBA
Maintained by: Ugo Candido, MBA
Page updated: Jul 14, 2026
Tool version: v1.1.0

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