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SaaS calculator

ARR Calculator

Convert recurring monthly revenue into annual recurring revenue, with optional expansion and contraction adjustments.

What ARR includes

ARR should represent recurring revenue normalized to one year. One-time setup fees, non-recurring services and usage spikes should be separated unless your reporting policy explicitly treats them as recurring.

Example

If base MRR is $60,000, ARR is $720,000. If expansion MRR adds $5,000 and contraction removes $2,000, net MRR is $63,000 and ARR is $756,000.

Common mistakes

Do not count setup fees, training projects or one-off services as ARR unless they are contractually recurring and reported that way.

ARR vs revenue

ARR is a run-rate metric, not the same as recognized revenue under accounting rules. Use it for SaaS planning and trend comparison, not as a substitute for financial statements.

Last reviewed: 2026-05-17

Before relying on this result

Use this calculator together with the formula, assumptions, limitations and examples on the page. If the topic involves health, tax, lending, investment, legal, safety or current-rate decisions, treat the number as an estimate and check the relevant primary source or professional guidance.

Calculator metadata last reviewed: 2026-05-14.