MRR to ARR Calculator
Annualize monthly recurring revenue into ARR, with a 12-month run-rate projection.
At today's $50,000 MRR, run-rate ARR is $600,000. Add expected monthly expansion or churn above to see where that lands 12 months out.
ARR here is a run-rate, MRR × 12, not audited annual revenue. The projection assumes the monthly net-new figure holds flat for all 12 months, a simplification, not a forecast.
About this calculator
ARR is just MRR multiplied by twelve, a founder or finance lead usually reaches for this the moment MRR starts getting quoted in a board deck, a term sheet, or a "what's your ARR" question from a prospect. The multiplication is trivial. What's useful is seeing that run-rate number move: enter the monthly dollars you expect to add from new business and expansion, and what you expect to lose to churn and contraction, and this projects where ARR lands a year out if that pace holds.
How to use it
- Enter your current MRR, the recurring revenue you're collecting this month.
- Leave the two optional fields at 0 for a plain ARR = MRR × 12 annualization, useful for a quick investor update or dashboard figure.
- To project forward, enter the monthly dollar amount you expect from new business plus expansion (upsells, seat growth), and separately the monthly dollar amount you expect to lose to churn and contraction.
- Read the projected MRR and ARR 12 months out, plus the dollar and percentage change versus today's run-rate.
Methodology
Run-rate ARR is simply current MRR × 12. That's the only number this calculator shows when both delta fields are left at 0, deliberately: annualizing MRR shouldn't require assumptions.
When you fill in expansion and churn, the tool computes a flat net-new figure per month (expansion + new business, minus churn and contraction), then projects it forward linearly: MRR twelve months out equals current MRR plus twelve times that monthly net-new figure. Projected ARR is that projected MRR, annualized the same way.
This is intentionally simple, a straight-line projection, not a compounding growth-rate model. Real MRR growth compounds (expansion this month grows the base expansion is calculated against next month), so if your net-new pace is itself accelerating or decelerating, treat this as a floor/ceiling sanity check rather than a precise forecast.
ARR from this calculator is a run-rate metric: what current MRR implies annualized, not audited, GAAP-recognized annual revenue. The two diverge whenever revenue recognition, contract terms, or seasonality don't map cleanly onto "this month × 12."
FAQ
For a straight run-rate figure, yes, that's the standard convention. But ARR should reflect what a customer base is worth on an annualized basis, so if this month's MRR was unusually high or low (a one-off surge, a seasonal dip), MRR × 12 will over- or under-state your real annual run-rate. Use a trailing average MRR if a single month looks unrepresentative.
A flat dollar delta is easier to reason about with real numbers pulled from your CRM or billing system (this month's new + expansion MRR, this month's churned MRR), and it avoids compounding a growth-rate assumption that might not hold. If your growth is genuinely compounding month over month, this projection will understate where you land, treat it as a conservative baseline.
The calculator combines them into one input on purpose, both add to MRR the same way. If you need the breakdown, new vs. expansion vs. resurrected vs. contraction vs. churn, use the MRR Bridge Planner instead, it reconciles all five movements for a single period rather than projecting forward.
Most SaaS boards want both: MRR shows recent momentum and month-to-month movement, ARR gives a stable annualized figure for comparing against valuation multiples, growth targets, and other companies. Neither replaces GAAP revenue on a P&L, both are operating metrics.
No, this tool only annualizes the recurring figure you enter. If your "MRR" number includes one-time implementation fees, professional services, or non-recurring add-ons, strip those out first, otherwise both the ARR figure and the projection will be inflated by revenue that won't repeat next month.