Annual Recurring Revenue Calculator

Calculate Annual Recurring Revenue



Formula

The formula to calculate the Annual Recurring Revenue is:

\[ ARR = MRR \cdot C \cdot 12 \]

Where:

What is Annual Recurring Revenue?

Annual Recurring Revenue (ARR) is a metric used to measure the predictable and recurring revenue components of your subscription business. It is calculated by multiplying the average monthly recurring revenue (MRR) per customer by the number of customers, and then by 12 to annualize it. This metric is crucial for understanding the long-term financial health and growth potential of a subscription-based business.

Example Calculation

Let's assume the following values: