Free tool · SaaS Metrics
ARR Calculator
Project your annual recurring revenue from MRR movements. Model new bookings, expansion, and churn separately – and surface net revenue retention in seconds.
01 · Starting MRR
Monthly recurring revenue right now
02 · Monthly MRR movements
MRR from newly signed customers
Upsells, plan upgrades, seat additions
MRR lost to cancellations and downgrades
Results
LiveStarting ARR
$600,000
Month-12 ARR
$1,608,000
ARR growth (12 months)
168%
Net Revenue Retention (NRR)
98.0%
Churn exceeds expansion
Gross monthly churn rate
6.00%
Net new MRR per month
+$7,000
Estimates based on compound monthly growth. Results are directional, not a guarantee of performance.
Month-by-month MRR movements
| Mo. | Opening MRR | New MRR | Expansion | Churned | Net new | Closing MRR | ARR |
|---|---|---|---|---|---|---|---|
| 1 | $50,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $57,000 | $684,000 |
| 2 | $57,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $64,000 | $768,000 |
| 3 | $64,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $71,000 | $852,000 |
| 4 | $71,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $78,000 | $936,000 |
| 5 | $78,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $85,000 | $1,020,000 |
| 6 | $85,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $92,000 | $1,104,000 |
| 7 | $92,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $99,000 | $1,188,000 |
| 8 | $99,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $106,000 | $1,272,000 |
| 9 | $106,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $113,000 | $1,356,000 |
| 10 | $113,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $120,000 | $1,440,000 |
| 11 | $120,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $127,000 | $1,524,000 |
| 12 | $127,000 | +$8,000 | +$2,000 | -$3,000 | +$7,000 | $134,000 | $1,608,000 |
How to use the calculator
Starting MRR plus three monthly movements. The table does the rest.
- 01
Enter your current MRR
Add your starting monthly recurring revenue. This is your current contracted MRR – the recurring revenue base that new bookings, expansion, and churn will modify each month.
- 02
Enter your MRR movements
New MRR is revenue from newly signed customers. Expansion MRR is additional revenue from upsells, seat additions, or plan upgrades from existing customers. Churned MRR is revenue lost to cancellations and downgrades.
- 03
Read the ARR outputs
The results panel shows starting and month-12 ARR, ARR growth percentage, net revenue retention (NRR), and gross monthly churn rate. NRR above 100% means expansion exceeds churn – the SaaS benchmark for efficient growth.
- 04
Check net revenue retention
NRR above 100% (sometimes called Net Dollar Retention) means existing customers expand faster than they churn. This is the single most important metric for sustainable SaaS growth. The ARR calculator shows it directly.
- 05
Use the MRR movement table
The 12-month table shows new MRR, expansion, churn, net new MRR, closing MRR, and ARR each month. Use it to model what happens to ARR if churn increases, or if you hit a new MRR target earlier than expected.
Why use this calculator?
Models ARR as MRR movements, not a single growth rate
ARR is driven by three separate forces: new business, expansion from existing accounts, and churn. Modeling them separately gives a more realistic picture of your ARR trajectory.
NRR is the most important SaaS metric
Net Revenue Retention above 100% means your existing customer base grows revenue without any new sales. The ARR calculator surfaces this immediately so you can see whether your expansion motion covers your churn.
Color-coded MRR movement table
New MRR and expansion MRR show in green; churned MRR in red; net new MRR in the appropriate colour. The visual pattern immediately shows whether your expansion motion is accelerating or churn is outpacing growth.
Useful for fundraising and board reporting
Investors want to see ARR trajectory and NRR. This calculator produces both in a format you can screenshot for a board deck or investor update.
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Open toolWho'll get the most out of this
- SaaS Founder / CEOProjecting ARR for investor updates, fundraising decks, and annual planning.
- Head of Revenue / CROModeling how different new MRR, expansion, and churn rates compound into ARR over 12 months.
- Finance / CFOBuilding ARR forecasts for board reporting and financial planning.
- Investor / VC AnalystQuickly modeling ARR trajectory from a company's MRR movement data.
- Customer Success LeadShowing the ARR impact of reducing churn by a specific monthly amount.
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Frequently asked questions
What does this ARR calculator model?+
The annual recurring revenue calculator takes your current MRR and three monthly movements – new MRR (from new customers), expansion MRR (from upsells and upgrades), and churned MRR (from cancellations and downgrades) – and projects your ARR month by month over 12 months. It outputs starting and ending ARR, ARR growth percentage, net revenue retention, and gross monthly churn rate. The 12-month table shows each month's MRR movements and the resulting closing MRR and ARR.How do you calculate ARR?+
How to calculate ARR: ARR = MRR × 12. This assumes your MRR is consistent across the year, which is true for flat-rate subscriptions. For usage-based or variable billing, use the last month's MRR × 12 as a run-rate estimate. ARR is a point-in-time metric: it tells you the annualised value of your current recurring revenue base, not the actual revenue you'll receive over the next 12 months (which depends on MRR movements).What is net revenue retention (NRR) and why is it the most important ARR metric?+
Net revenue retention (NRR) = (starting MRR + expansion MRR − churned MRR) / starting MRR × 100. An NRR above 100% means your existing customer base grows revenue without any new sales. This is the most important SaaS metric because it means your growth compounds from existing accounts. Best-in-class SaaS companies (Snowflake, Datadog, HubSpot) run NRR of 115–140%. An NRR below 100% means you need new sales to offset shrinkage in the existing base – a structural headwind to ARR growth.What's the difference between ARR and MRR in this calculator?+
MRR is the monthly figure; ARR is MRR annualized (× 12). In the ARR calculator, movements are modeled at the monthly level (new, expansion, churned MRR per month) and ARR is derived from closing MRR × 12 at each month end. The practical difference: MRR tells you your current run-rate; ARR is the number investors and boards use to compare companies and track growth. The calculator shows both at each month in the projection table.How do I calculate annual recurring revenue from a contracts-based model?+
For a contracts-based model where customers pay annually, ARR = total value of all active annual contracts. If some contracts are monthly and some are annual, calculate annual contract value for monthly customers (monthly MRR × 12) and add to the sum of active annual contract values. The ARR calculator assumes a subscription model where MRR movements are roughly consistent month-to-month – adjust for seasonal booking patterns by averaging your quarterly new MRR across months.What gross monthly churn rate is considered healthy?+
Gross monthly churn rate benchmarks: below 1% for enterprise SaaS with long contracts and high switching costs. 1–2% for mid-market SaaS. 2–4% for SMB SaaS with monthly billing. Above 4% is a retention problem that will compound into significant ARR headwinds. The ARR calculator shows your gross monthly churn rate so you can compare against these benchmarks. Note: gross churn measures revenue loss only, not expansion – NRR accounts for both.How do I model the ARR impact of a churn reduction initiative?+
Run the ARR calculator with your current churned MRR, then rerun it with a reduced churned MRR reflecting the improvement you expect from your retention programme. The difference in month-12 ARR is the value of that initiative. For example: if you're churning $3,000/month and expect to reduce it to $2,000/month through proactive customer success, the ARR calculator shows the ARR impact of that $1,000/month reduction compounded over 12 months. This makes the business case for CS investment concrete.Can I use this ARR calculator for non-SaaS subscription businesses?+
Yes. The ARR calculator works for any subscription or recurring revenue model: SaaS, agencies on retainer, media subscriptions, managed services, insurance, or any business with predictable monthly recurring revenue. Enter your recurring monthly revenue as MRR, model new accounts as new MRR, account expansions as expansion MRR, and cancellations as churned MRR. The math is identical regardless of the industry.What expansion MRR rate is realistic for a B2B SaaS company?+
Expansion MRR benchmarks depend on your pricing model. Seat-based or usage-based models with organic expansion potential: 5–15% of starting MRR per month (if the product has natural growth loops). Flat-rate models without upsell paths: 1–3%. The best expansion motion is one that happens without a dedicated sales push – customers grow into the product, hit usage limits, and upgrade. If you're running 0% expansion MRR, there's either no upgrade path or no one is actively managing it.How is this ARR calculator different from a simple ARR = MRR × 12 formula?+
ARR = MRR × 12 gives you a single point-in-time number. This annual recurring revenue calculator models how ARR changes over 12 months as a result of three separate monthly forces – new, expansion, and churn. It surfaces net revenue retention, which the simple formula misses entirely. It also shows the trajectory: does ARR accelerate through the year as expansion builds, or does it slow as churn compounds? The 12-month table answers those questions and gives you a basis for the kind of ARR forecasting that belongs in a board deck.