AlusLabs

AlusLabs

ARR Calculator

Convert MRR or contract values into annual recurring revenue. Project ARR forward using a growth rate.

Results

Current ARR

$600,000

Projected ARR

$1,077,514

Trajectory

Month 1$630,000
Month 2$661,500
Month 3$694,575
Month 4$729,304
Month 5$765,769
Month 6$804,057
Month 7$844,260
Month 8$886,473
Month 9$930,797
Month 10$977,337
Month 11$1,026,204
Month 12$1,077,514

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The ARR calculator converts your monthly recurring revenue or individual contract values into annualized recurring revenue — the metric investors and SaaS operators use to benchmark company size and growth. ARR is simply MRR multiplied by 12 for subscription businesses, but for contract-based models it requires normalizing different contract lengths to an annual figure. This tool also projects your ARR forward based on your current growth rate, helping you forecast when you'll hit key milestones like $1M, $5M, or $10M ARR.

How to calculate ARR

MRR-based: ARR = MRR × 12 Contract-based: Annualized ARR = Σ(Contract Value ÷ Contract Length in Months × 12) Projection: Projected ARR uses MRR growth rate compounded monthly.

FAQ

How do you calculate ARR?expand_more
For subscription SaaS, ARR is typically calculated as MRR × 12. For contract-based revenue, you annualize each contract by converting it to a monthly value and multiplying by 12.
Is ARR the same as revenue?expand_more
ARR is an annualized run-rate of recurring revenue, not GAAP revenue. It's used to compare recurring businesses at a point in time.
How accurate are ARR projections?expand_more
Projections are only as accurate as your growth assumptions. Use them for planning, not guarantees.
What milestones do SaaS companies track?expand_more
$1M ARR, $5M ARR, and $10M ARR are common milestones. Growth rate and churn determine how quickly you get there.
How can I increase ARR faster?expand_more
Grow MRR through acquisition and expansion, reduce churn, and improve onboarding and customer success. Automation can help reduce operational drag.

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