ARR Calculator
Calculate ARR from MRR with growth simulation and churn-adjusted projections. Free annual recurring revenue calculator for SaaS founders and operators.
Inputs
Enter the minimum numbers needed to get a result.
Formula and example
Current ARR = MRR × 12; Projected MRR = MRR × (1 + Growth% - Churn%)^N; Projected ARR = Projected MRR × 12; Annual Growth = (1 + Growth%)^12 - 1; Months to Double = log(2) / log(1 + Growth% - Churn%)
With $50,000 MRR, 5% monthly growth, and 3% churn over 12 months: current ARR is $600,000, projected ARR is ~$760,000, net new ARR is ~$160,000, implied annual growth is ~80%, and doubling time is ~35 months.
Methodology & assumptions
Last updated: 2026-06-25Calculation method
Calculates ARR as MRR × 12. Projects future ARR using compound growth: MRR × (1 + growth rate - churn rate)^N. Implied annual growth rate uses compound monthly growth: (1 + monthly rate)^12 - 1. Months to double uses the rule of 72 adapted to monthly compounding: log(2) / log(1 + net growth rate).
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Assumes constant growth and churn rates over the projection period. Does not model seasonality, expansion revenue from existing customers, or pricing changes. Best used for early-stage SaaS planning — update projections quarterly as real data accumulates.
Input definitions
- Current MRR: Your current monthly recurring revenue.
- Monthly MRR growth rate: Expected month-over-month MRR growth rate.
- Projection period: Number of months to project forward.
- Monthly churn rate: Expected monthly customer churn rate (deducted from growth).
Frequently asked questions
What's the difference between ARR and run rate?+
ARR = MRR × 12. Run rate annualizes your most recent month. For subscription businesses with consistent MRR, they're the same.
What's a good MRR growth rate for early-stage SaaS?+
Pre-PMF: 10-20% monthly. Post-PMF seed stage: 5-10% monthly is considered strong. Growth naturally decelerates as base grows.
Should I include one-time fees in ARR?+
No. ARR only includes recurring subscription revenue. One-time setup fees, consulting, and usage-based overages go in total revenue, not ARR.
When should I use ARR vs MRR?+
MRR for internal weekly/monthly tracking and early-stage fundraising. ARR for annual planning, board decks, and post-Series-A fundraising.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.