ARR calculator.
Convert between MRR and ARR in either direction, then see your year-over-year growth and whether you pass the Rule of 40.
Free · Runs in your browser · Formulas shown
Your recurring revenue
Recurring subscription revenue only.
Growth (optional)
For year-over-year growth.
EBITDA or free cash flow margin, for the Rule of 40. Can be negative.
Building a SaaS?
$144,000 in ARR is $12,000 every month. SyntaxKit is a Next.js starter kit with sign-in, payments and teams built in, so you reach your first paying customer sooner.
$144,000
$12,000 MRR × 12.
- ARR
- $144,000
- MRR
- $12,000
- Year-over-year growth
- 60%
- Rule of 40passes
- 50
Building a SaaS?
$144,000 in ARR is $12,000 every month. SyntaxKit is a Next.js starter kit with sign-in, payments and teams built in, so you reach your first paying customer sooner.
How ARR is calculated.
ARR = MRR × 12
MRR = ARR ÷ 12
YoY growth = (ARR now − ARR a year ago) ÷ ARR a year ago
Rule of 40 = growth % + profit margin %
Passes: growth and profit together reach 40.
MRR to ARR at a glance.
About $83,333 MRR is the $1M ARR milestone. To see where that MRR comes from, month by month, use the MRR calculator.
ARR questions.
How do you calculate ARR?
Multiply monthly recurring revenue by 12. $12,000 MRR is $144,000 ARR. For annual contracts, ARR is the yearly value of the active recurring contracts.
How do I convert ARR to MRR?
Divide by 12. $1,000,000 ARR is $83,333 MRR. Choose 'ARR to MRR' in the calculator to convert in that direction.
What is the difference between ARR and revenue?
ARR is a run-rate of recurring subscriptions at a point in time. Revenue is what you actually recognize in a period under accounting rules, and it includes one-time fees and services that ARR leaves out.
How do multi-year or monthly-paid annual contracts count in ARR?
At their annual value. A three-year contract worth $36,000 adds $12,000 of ARR, and an annual contract paid monthly still counts at its full yearly value.
Should usage-based revenue be included in ARR?
Only committed usage, such as a minimum spend in the contract. Variable usage on top is better reported separately, because it isn't guaranteed to recur.
What is the Rule of 40?
A SaaS company's growth rate plus its profit margin should add up to at least 40. Growing 60% a year at a −10% margin scores 50, which passes.
What is net new ARR?
New plus expansion plus reactivated ARR, minus contraction and churned ARR, over a period. It is net new MRR expressed per year; the MRR calculator breaks the movements down.
Spend your time on the product, not the plumbing.
Every number on this page starts with a product people can sign up for and pay for. SyntaxKit is a Next.js starter kit that ships those foundations finished, so you reach your first paying customer sooner.
- Sign-in with Google, GitHub, magic links and 2FA
- Payments on Stripe, Polar or Creem
- Teams with roles and invites
- AI chat with usage limits
- A type-safe API from database to UI
- Analytics, email and rate limiting
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Current MRR
$0
+18.6%Related tools.
All free tools- MRR calculatorMonthly recurring revenue from your plans, and net new MRR from new, expansion, contraction and churned revenue.
- LTV calculatorCustomer lifetime value from ARPA, gross margin and churn, with LTV:CAC, payback and a discounted LTV that survives 0% churn.
- Churn rate calculatorCustomer churn, compounded annual churn, gross and net MRR churn, GRR and NRR from one set of numbers.