MRR to ARR Calculator
Converts monthly recurring revenue into annual recurring revenue, and shows the effect of churn on the annualized number.
| Month | Projected MRR | Net Change | Annualized Run-Rate |
|---|
How to Use This Tool
- 1 Enter your current Monthly Recurring Revenue (MRR) in dollars.
- 2 Optionally input your expected monthly churn rate percentage (defaults to 0% for naive ARR).
- 3 Optionally input your expected monthly growth rate percentage.
- 4 Review your churn-adjusted ARR alongside the naive annualized baseline and monthly projection breakdown.
Understanding MRR vs. Compounded ARR
MRR and ARR are the two numbers SaaS founders quote most often, and they get confused constantly. MRR is what you collected this month. ARR is not a forecast, it is simply MRR multiplied by 12, treated as a snapshot rather than a prediction.
The naive version of this math ignores two things that matter in practice: churn, which shrinks your base every month, and growth, which the naive multiplication also ignores. A company with 1000 dollars MRR and 5 percent monthly churn does not end the year at 12000 dollars ARR, because the base has been leaking the whole time.
This calculator does the month by month math instead of the shortcut, so the ARR number reflects what is actually likely to happen rather than a textbook multiplication. Investors, especially in early SaaS rounds, will ask for both the naive ARR and the churn adjusted version, so having both numbers ready saves a follow up email.