ARR Calculator — Annual Recurring Revenue & SaaS Growth ForecastARR = MRR × 12 · New ARR · Expansion ARR · Churned ARR · Net New ARR
Accurately project your SaaS revenue trajectory with this free ARR Calculator — the essential Annual Recurring Revenue forecasting tool for SaaS founders, CFOs, and investors. Calculate your precise ARR from MRR using the standard formula ARR = MRR × 12, then model your full net new ARR breakdown by factoring in new subscription ARR · expansion & upsell ARR · contraction ARR · churned ARR — delivering an accurate projected ARR growth forecast without the complexity of spreadsheets.To further evaluate profitability alongside revenue growth, you can calculate profit margins and measure overall business performance. Track critical SaaS financial metrics including ARR growth rate (%), ARR per customer (ARPU), net revenue retention (NRR), and customer churn impact on ARR — trusted by early-stage startups, Series A/B SaaS companies, venture capital analysts, and SaaS investors for real-time SaaS valuation and revenue forecasting.
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ARR Calculator — The SaaS Metric Every Investor Asks About First
Annual Recurring Revenue is the single most important metric in subscription businesses because it represents the predictable, contracted revenue baseline the company can plan around. ARR is not total revenue — it excludes one-time fees, professional services, and non-recurring transactions. A SaaS company with 200 customers paying $500/month has ARR of $1.2 million, regardless of what else they billed that year. Investors, acquirers, and board members use ARR as the primary scale indicator, and your calculation must match industry convention exactly.
MRR-to-ARR conversion is simply MRR multiplied by 12, but the inputs to MRR require precision. New MRR from new customers, expansion MRR from upgrades, contraction MRR from downgrades, and churned MRR from cancellations all flow into net new MRR each month. A company with $100,000 MRR that adds $15,000 in new and expansion MRR but loses $8,000 to churn and contraction has net new MRR of $7,000 and ending MRR of $107,000. ARR is $1.284 million. The ARR calculator handles all four MRR components correctly.
ARR multiples drive SaaS valuations. At the peak of the 2021 market, high-growth SaaS companies traded at 20-40x ARR. By 2023 the range compressed to 4-8x for most companies, with only the fastest growers (100%+ annual growth) commanding double-digit multiples. Knowing your ARR precisely matters for fundraising conversations, M&A discussions, and equity compensation decisions where the company's implied value per share depends directly on the ARR figure.