Business

Annual Recurring Revenue Calculator

Turn monthly recurring revenue into an annualised recurring revenue figure.


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The result is the yearly run-rate of recurring income at the current monthly level, so it shows what a full year would bring in if the current subscriber base stayed steady.

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.

Worked example

For example, monthly recurring revenue of $2000 multiplied by 12 gives $24,000 per year.

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.

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Business Profit Margin Calculator

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Formula shown on the page

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