ARR Calculator

ARR is the annualised value of your predictable, recurring subscription revenue. It tells you how much revenue your business will generate over a full year if nothing changes - no new customers gained, no customers lost. ARR is the foundational metric for any subscription or SaaS business because it strips out one-time payments and gives you a stable view of business health.

MRR (Monthly Recurring Revenue) is the recurring revenue you collect in a single month. ARR is simply MRR × 12. MRR is useful for tracking month-to-month momentum, while ARR gives investors, executives, and boards a single annual figure for planning and valuation. For businesses with annual contracts, ARR is often the primary metric.

Enter your current number of active subscribers, the average monthly revenue per subscriber, your monthly growth rate, and your monthly churn rate. The calculator computes your current MRR and ARR, then simulates 12 months of growth and churn compounded monthly to give you a projected ARR. Expansion revenue and discounts are optional adjustments.

Best-in-class SaaS businesses target monthly churn below 0.5–1%. Early-stage startups often see 2–5% monthly churn. Consumer subscription products may see higher rates. Even a 1% difference in monthly churn compounds significantly - reducing churn from 3% to 2% can increase your projected ARR by 10–15% over 12 months.

Expansion revenue is incremental recurring revenue from existing customers - upsells to higher-tier plans, cross-sells of additional modules, seat expansions, or usage-based overages. Healthy SaaS businesses aim for a Net Revenue Retention (NRR) above 100%, meaning expansion revenue more than offsets churn. Enter a monthly expansion revenue estimate in the calculator to see its impact on your ARR.

This is your estimated ARR one year from now, assuming your current growth rate and churn rate continue each month. It compounds monthly: each month your customer count grows by your growth rate percentage and shrinks by your churn rate percentage. The result is your expected subscriber base in month 12, multiplied by average revenue per customer, then annualised.

Churn is the silent killer of ARR. Every customer who cancels removes their recurring revenue from your base permanently. At 3% monthly churn, you lose roughly 30% of your customers over a year. At 1% monthly churn, you retain over 88%. This calculator shows you 'Revenue Lost to Churn' over 12 months so you can see the real cost of retention gaps.

Net Revenue Gain is the difference between your Projected ARR after 12 months and your current ARR. A positive number means your business is growing - new customer acquisition and expansion revenue are outpacing churn. A negative or flat number is an early warning that churn is eroding your base faster than you're growing it.

Yes. Any business with predictable recurring revenue - SaaS, subscription boxes, media, marketplaces, agencies on retainer, or professional services on subscription - can use this calculator. The inputs map directly: 'monthly customers' means active paying subscribers, and 'average revenue per customer' means the average monthly recurring charge.