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MRR to ARR Calculator

Converts monthly recurring revenue into annual recurring revenue, and shows the effect of churn on the annualized number.

Subscription Revenue Inputs USD ($)
$
Presets:
Your total recurring subscription revenue collected this month.
%
Presets:
Percentage of recurring revenue lost each month.
%
Presets:
Expected month-over-month new recurring bookings rate.
SaaS Founder Note: Naive ARR (MRR × 12) is only accurate if monthly growth exactly offsets monthly churn. Inspect the Month 12 projection on the right to see your true run-rate.
Annualized Output LIVE PROJECTION
Churn & Growth-Adjusted ARR (Month 12)
$0
Compounded 12-month net recurring run-rate.
Naive Baseline ARR (MRR × 12)
$0
Textbook static snapshot assuming zero net monthly variation.
Calculating ARR...
12-Month Projected MRR Trajectory Scroll table →
Month Projected MRR Net Change Annualized Run-Rate

How to Use This Tool

  1. 1 Enter your current Monthly Recurring Revenue (MRR) in dollars.
  2. 2 Optionally input your expected monthly churn rate percentage (defaults to 0% for naive ARR).
  3. 3 Optionally input your expected monthly growth rate percentage.
  4. 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.

Frequently Asked Questions

Is ARR just MRR times 12?
Only as a rough estimate. That version ignores churn and growth, both of which change the real annual number.
What churn rate should I use if I do not know mine yet?
Leave it at 0 for the naive number, then re-run the calculation with 3 to 5 percent as a conservative estimate common in early stage SaaS.
Does this tool store or send my revenue data anywhere?
No. The calculation runs entirely in your browser using JavaScript. Nothing is transmitted or saved.
Why does my ARR look lower than MRR times 12?
That happens once churn is factored in. The base shrinks slightly every month, so the compounded annual total comes in under the naive multiplication.