Annual Recurring Revenue Calculator

    Enter current MRR, annual-only contract value, multi-year contract value, monthly churn, expansion rate, growth forecast, and forecast horizon. See MRR-based ARR, contracts ARR, total ARR, net retention, projected ARR at 6 and 12 months, and implied valuation at 5x and 10x multiples. Use it to translate monthly momentum into the annual number investors and buyers actually underwrite.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

    Values update results instantly. Adjust fee assumptions to match your seller dashboard.

    Revenue

    USD

    Current Monthly Recurring Revenue

    USD

    Total value of annual-only contracts (not monthly×12)

    USD

    Total multi-year contracts, amortize annual portion

    Retention

    %

    Percent of MRR churned monthly

    %

    Net expansion from upgrades and add-ons

    Projections

    %

    Expected monthly net MRR growth

    Months to project forward

    Results

    Live estimates based on your inputs and editable fee assumptions.

    ARR from MRR

    $174,000.00

    Current MRR ×12.

    ARR from annual contracts

    $24,000.00

    Annual-only contracts value.

    ARR from multi-year (amortized)

    $0.00

    Multi-year value divided by years (assumes 2y if any).

    Total ARR

    $198,000.00

    MRR-based plus contracts ARR.

    Net revenue retention monthly %

    98.5%

    1 − churn + expansion.

    Gross MRR growth % forecast

    5.0%

    Your input growth forecast.

    Projected ARR in 6 months

    $257,176.64

    At growth forecast compound.

    Projected ARR in 12 months

    $336,479.00

    At forecast horizon.

    Implied valuation at 5× ARR

    $990,000.00

    Conservative SaaS multiple.

    Implied valuation at 10× ARR

    $1,980,000.00

    Strong growth SaaS multiple.

    What this means

    MRR $14500 → ARR $174000. +$24000 annual +$0 multi-year = $198000 total ARR. Net retention 98.5%. At 5.0% monthly, 12mo projected $336479 ARR. 5× $990000, 10× $1980000.

    ARR composition and projection

    Interactive breakdown of fees, costs, and remaining profit.

    Distribution

    • ARR from MRR
      $174,000.00
      51.7%
    • Annual contracts
      $24,000.00
      7.1%
    • Growth delta
      $138,479.00
      41.2%

    Total $336,479.00 · 3 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Current MRR
    $14,500.00
    ARR from MRR (×12)
    $174,000.00
    Annual contracts ARR
    $24,000.00
    Multi-year amortized ARR
    $0.00
    Total ARR now
    $198,000.00
    Net retention monthly
    98.5%
    Growth forecast
    5.0%
    6-month projected ARR
    $257,176.64
    12-month projected ARR
    $336,479.00
    Implied valuation 5×
    $990,000.00
    Implied valuation 10×
    $1,980,000.00

    Assumptions used

    • • ARR from MRR $174000.00 = $14500.00×12
    • • Total ARR $198000.00 = 174000.00+24000.00+0.00
    • • Net retention 98.5% = 0.9850×100

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    How it works

    Methodology & formulas

    This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.

    Calculation steps

    1. 1Multiply current MRR by 12 for base ARR.
    2. 2Add annual-only contracts directly; amortize multi-year over assumed term.
    3. 3Calculate net retention from churn and expansion inputs.
    4. 4Compound MRR by growth forecast for projection months.
    5. 5Convert projected MRR back to ARR for future estimates.
    6. 6Apply 5× and 10× multiples for quick valuation sanity check.

    Formulas

    • arrFromMRR = currentMRR ×12
    • arrFromAnnual = annualContractValue
    • arrFromMulti = multiYear/2 if >0 else 0
    • totalARR = arrFromMRR + arrFromAnnual + arrFromMulti
    • netRetention = 1 − churn/100 + expansion/100
    • projectedMRR = currentMRR × (1+growth)^months
    • projectedARR = projectedMRR×12 + annual + multi
    • valuation = ARR × multiple

    Important assumptions

    • ARR from MRR = currentMRR ×12.
    • ARR from annual contracts = annualContractValue (already annual).
    • ARR from multi-year = multiYearContractValue / 2 amortized annually if value >0, 0 otherwise.
    • Total ARR = MRR-based + annual + multi-year.
    • Net retention monthly = 1 − churnRate/100 + expansionRate/100.
    • Projected MRR = currentMRR × (1+growthForecast)^months.
    • Projected ARR = projectedMRR×12 + annualContracts (flat) + amortized multi-year.
    • Implied valuations = totalARR ×5 and ×10.

    Worked example

    $14.5K MRR plus $24K annual contracts

    $14.5K MRR, $24K annual contracts, $0 multi-year, 3% churn, 1.5% expansion, 5% growth, 12 month forecast.

    $14.5K MRR → $174K ARR from MRR. +$24K annual contracts = $198K total ARR. Net retention monthly 98.5%. Growth 5%/mo. 6 months: $14.5K×1.05^6≈$19.43K MRR → $233K +$24K = $257K projected. 12 months: $14.5K×1.05^12=$26,038 MRR → $312.5K +$24K = $336.5K projected. At 10x multiple, valuation roughly $2M now, $3.36M if forecast holds.

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