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ARR calculator

ARR (annual recurring revenue) is the yearly value of your subscription revenue. It is calculated as MRR times 12. Enter your MRR to get ARR, then add the four monthly movements (new, expansion, contraction and churn) to see net new ARR. No signup, nothing stored. New to the term? Read the ARR meaning guide for how to build ARR from a customer list.

ARR
€504,000
MRR x 12
Net new ARR
+€68,400
this month, annualized
ARR next month
€572,400
if movements repeat

Your net revenue retention is running at 99%. Above 100% means the base grows even with zero new customers.

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The ARR formula

ARR is monthly recurring revenue multiplied by 12. A company with 42,000 euros of MRR has 504,000 euros of ARR. Net new ARR applies the same step to change: add new and expansion MRR, subtract contraction and churned MRR, then multiply the result by 12. The one thing people get wrong is what goes in: one-time fees and usage overages are not recurring, so they stay out.

ARR         = MRR x 12
net new ARR = (new + expansion - contraction - churn) x 12

Stripe's ARR guide gives the same conversion: ARR equals MRR times 12.

The headline ARR is easy. The movements are where the truth is: a company can grow ARR on new logos while quietly bleeding it through churn, and only the net figure shows it. When expansion beats contraction plus churn, your base grows even with zero new customers, which is the definition of net revenue retention above 100 percent. Read what is ARR and MRR vs ARR, or the one-sentence ARR definition with the T2D3 growth benchmark.

Common questions

What is the ARR formula?

ARR = MRR x 12. Annual recurring revenue is simply monthly recurring revenue annualized, so a company at 42,000 euros of MRR has 504,000 euros of ARR.

How do you calculate ARR from MRR?

Multiply current MRR by 12. Do not add one-time fees, setup charges or usage overages, because ARR only counts revenue that recurs every year.

What is net new ARR?

The change in ARR over a period: (new MRR + expansion - contraction - churn) x 12. It tells you whether the recurring base is growing or shrinking before any single big deal flatters the headline number.

What is the difference between ARR and revenue?

Revenue is everything you billed, including one-off projects and usage. ARR is only the recurring, contracted portion annualized. ARR annualizes your current recurring base; it does not predict what you will collect next year.

Track the movements, not just the total

Use your billing records to calculate new, expansion, contraction and churned revenue here, keeping the movement history separately. Plainhub tracks the current recurring total from active customers and recurring income. Changing a customer's status updates MRR, net burn and runway so you can see the cash impact.

Build your modelMRR calculator