ARR Calculation
ARR measures predictable, recurring revenue normalized to one year.
Formula
ARR = (MRR × 12) + Annual Subscriptions
ARR Calculator (Annual Recurring Revenue)
Calculate annual recurring revenue for subscription businesses. Essential SaaS financial metric.
Annual Recurring Revenue
$arr
Total ARR
💡 ARR Insights
• ARR is the most important SaaS metric
• Track ARR growth rate month-over-month
• Good ARR growth: 100%+ for early stage, 40%+ for growth stage
• ARR excludes one-time fees and services revenue
• Net New ARR = New ARR + Expansion - Churn
Frequently Asked Questions
What is ARR?
Annual Recurring Revenue (ARR) is the value of recurring subscription revenue normalized to one year. Formula: (MRR × 12) + Annual Subscriptions. ARR excludes one-time fees, services, and non-recurring revenue. It's the primary metric for SaaS valuation.
What is a good ARR growth rate?
Good ARR growth varies by stage: Seed stage 200-300% YoY, Early stage (Series A) 100-200% YoY, Growth stage (Series B+) 40-100% YoY, Late stage/Pre-IPO 25-50% YoY. Rule of 40: Growth Rate % + Profit Margin % should exceed 40.
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