MRR to ARR calculator
ARR is MRR multiplied by twelve - nothing more. Type either number and the other updates. If your MRR figure includes annual plans, make sure they were already normalized to a monthly value (yearly price ÷ 12) before converting, otherwise ARR will be overstated.
MRR
$8,500.00
ARR
$102,000
ARR = MRR × 12. Annual plans must already be normalized to a monthly value before you type them in as MRR.
Frequently asked questions
What is the formula for ARR?
ARR = MRR × 12. To go from ARR to MRR, divide by 12.
Is ARR the same as annual revenue?
No. ARR only counts recurring subscription revenue. One-time sales, services and usage fees are revenue but not ARR.
When should I report ARR instead of MRR?
Report MRR while you are early-stage and billing monthly; switch to (or add) ARR for board decks, fundraising from Series A onward, and when most contracts are annual.