The method
How it is worked out
ARR = n × p × 12 (monthly) ARR = n × p (yearly)
- n
- Customers
- p
- Average price
ARR Calculator
Calculate annual recurring revenue from the number of paying customers and their average monthly or yearly subscription price. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- ChurnCustomers who leave mid-year reduce what you actually collect.
- DiscountsUse the price customers really pay, after discounts.
- One-off feesSet-up and services revenue isn't recurring.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the ARR Calculator
Annual recurring revenue, or ARR, annualises the current recurring value of a subscription customer base. Use this calculator to translate customer numbers and average subscription price into a comparable yearly run rate.
How it works and an example to tryShow less
How to use the result
Enter the number of paying customers, their average price and whether that price is monthly or yearly. Monthly prices are multiplied by 12 and annual prices are counted once per customer; the corresponding MRR is also displayed. This is a snapshot at today's customer count, not guaranteed cash collected over the next year, and it excludes one-off services.
Example to try
Model an early SaaS company with 40 customers paying 49 each month. Change the customer count while holding pricing constant to compare run rates. Do not add a separate setup fee to the subscription price merely to make ARR look larger.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
SaaS founders preparing metrics for investors, sales leaders setting targets, and anyone converting a mix of monthly and annual plans into one comparable yearly figure.
Mistakes worth avoiding
- Including one-off setup or professional-services fees in recurring revenue.
- Counting customers on free trials or in arrears.
- Presenting ARR as cash you will collect this year; churn will happen.
Questions
What does the ARR Calculator do?
Calculate annual recurring revenue from the number of paying customers and their average monthly or yearly subscription price.
How should I use the result?
Enter the number of paying customers, their average price and whether that price is monthly or yearly. Monthly prices are multiplied by 12 and annual prices are counted once per customer; the corresponding MRR is also displayed. This is a snapshot at today's customer count, not guaranteed cash collected over the next year, and it excludes one-off services.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with an arr calculator?
Including one-off setup or professional-services fees in recurring revenue. Counting customers on free trials or in arrears. Presenting ARR as cash you will collect this year; churn will happen.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.