Annual Recurring Revenue Calculator
Free ARR calculator. Multiply MRR by 12 or sum annualized contracts. Essential SaaS metric.
How Annual Recurring Revenue Calculator Works
ARR = MRR × 12, or sum of all annual contract values. Enter monthly recurring revenue to annualise it, or input contract values directly. ARR is the primary metric investors use to value SaaS companies — most comparables are valued as a multiple of ARR. Also used for annual planning and forecasting.
ARR Valuation Milestones
| Label | Meaning |
|---|---|
| $1–3M ARR | Typical Series A threshold (Bessemer) |
| $3–10M ARR | Series B range |
| $10–30M ARR | Series C range — approaching scale |
| Above $100M ARR | IPO-ready territory for SaaS |
Frequently Asked Questions
What is ARR?
Annual Recurring Revenue (ARR) is the annualised value of all active subscription contracts. For a business with $50,000 MRR, ARR is $600,000. ARR is the primary valuation metric for SaaS businesses — most public SaaS companies are valued as a multiple of ARR.
ARR vs MRR — when to use each?
Use MRR for month-to-month operational tracking (growth rate, churn impact). Use ARR for investor reporting, valuation discussions, and annual planning. ARR = MRR × 12 only if revenue is truly monthly and recurring.
What counts toward ARR?
Only contractually committed, recurring revenue. One-time fees, professional services, and non-recurring revenue should be excluded. Including them inflates ARR and misleads investors.
Is my data stored?
No.
Can I use this on mobile?
Yes.
About This Tool
Built by the Calcyo team and last updated June 2026. All calculations follow industry-standard methodology. No data leaves your browser — calculations run entirely client-side using JavaScript. If you spot an error in the formula or benchmark data, email us at support@calcyo.xyz.