Business
Annual Recurring Revenue Calculator
Turn monthly recurring revenue into an annualised recurring revenue figure.
Formula
Annual recurring revenue = monthly recurring revenue multiplied by 12.
How it works
Multiply this month's recurring revenue by twelve to annualise it. The figure assumes the current subscriber base stays steady, so treat it as a run-rate snapshot rather than a guaranteed yearly total.
FAQs
Is ARR guaranteed income?
No, it is an annualised snapshot. Churn, downgrades and upgrades will change the real yearly total.
How is ARR different from revenue?
ARR only counts recurring subscription income, while total revenue also includes one-off sales and services.
When is ARR most useful?
For comparing growth between months and for planning, since it smooths one-off sales out of the picture.
Estimates only, not financial advice. Check your figures before making a business decision.