How to use the ARR calculator
Enter the recurring charge for one billing period, choose the billing cycle, and add the number of identical subscriptions if the amount applies to one subscription. The ARR Calculator shows ARR, MRR, the formula, the assumptions, and a result you can copy or download.
- Enter a number of 0 or greater in Recurring revenue per billing period. Use the recurring charge for one period, leaving out one-time fees, setup charges, and non-recurring discounts.
- Choose a Currency symbol. The symbol changes how amounts are displayed; it does not convert the amount.
- Choose Billing period: Monthly (12 periods/year), Quarterly (4 periods/year), Semi-annual (2 periods/year), Annual (1 period/year), Weekly (52 periods/year), or Custom cycle length….
- For a custom cycle, enter a whole number of at least 1 in Days per billing cycle.
- Enter a whole number of at least 1 in Number of identical subscriptions (optional). Leave it at 1 when the revenue amount already represents the total.
- Select Calculate ARR. The result section appears when the entries pass validation.
How the ARR and MRR formula works
The calculator multiplies recurring revenue per period by billing periods per year and the number of subscriptions. It divides the resulting ARR by 12 for MRR. With a monthly charge of $2,500 and one subscription, the displayed values are:
ARR = $2,500 × 12 × 1 = $30,000.00
MRR = $30,000.00 ÷ 12 = $2,500.00The Result section lists the selected period, billing periods per year, subscription count, ARR, and MRR. It also shows ARR = Recurring revenue per period × Billing periods per year × Number of subscriptions.
What each ARR calculator option changes
Currency symbol changes presentation only. Monthly uses 12 periods per year, Quarterly uses 4, Semi-annual uses 2, Annual uses 1, and Weekly uses 52. Number of identical subscriptions multiplies the recurring amount before the annual figure is calculated.
Money values display two decimal places. Select Copy result to place the result text on the clipboard, or select Download result (.txt) to save a text file. Reset clears the entries and hides the result.
What a custom billing period does
Choose Custom cycle length… for a recurring charge that does not match the listed periods. Enter a whole number in Days per billing cycle. The calculator uses 365.25 ÷ days per billing cycle for billing periods per year, so a 45-day cycle produces a non-whole-number annual factor.
Recurring revenue must be a number of 0 or greater. Days per billing cycle and Number of identical subscriptions must be whole numbers of at least 1. When validation fails, an error appears and the result remains hidden.
Where this comes up
For one plan, enter its recurring charge, choose Monthly, and set Number of identical subscriptions to the matching count. For a quarterly or annual charge, choose the matching Billing period. A 45-day renewal cycle uses Custom cycle length… with 45 in Days per billing cycle.
When another business calculator fits better
Use the Business Calculators category for another business measure. The MRR Calculator creates a monthly movement report from starting, new, expansion, contraction, and churned MRR. The Break-Even Revenue Calculator uses fixed costs, price per unit, and variable cost per unit.
The Cash Runway Calculator uses cash balance, revenue, burn assumptions, and a month-by-month projection. ARR annualizes recurring revenue and does not calculate cash runway or break-even units.
Frequently asked questions
How do I calculate annual recurring revenue?
Enter Recurring revenue per billing period, choose Billing period, and enter Number of identical subscriptions (optional). The calculator applies the selected periods-per-year factor and shows ARR plus MRR.
What is the difference between ARR and MRR?
ARR is recurring revenue annualized with the selected billing-period factor. MRR is the calculator's ARR divided by 12. Both values use the amount, Billing period, and subscription count you enter.
Does ARR include one-time fees or discounts?
ARR uses the recurring charge you enter. Leave out one-time fees, setup charges, and non-recurring discounts because the calculator applies every entered amount to the selected billing cycle.
Can I calculate ARR for a custom billing cycle?
Choose Custom cycle length… and enter a whole number of at least 1 in Days per billing cycle. The calculator divides 365.25 by that number to determine billing periods per year.