ARR Calculator
ARR Calculator
Convert MRR to ARR instantly. Free ARR calculator for SaaS founders and investors.
For demonstration purposes only. Estimates are illustrative and do not represent a formal valuation.
How it works
What is the ARR Calculator?
ARR (Annual Recurring Revenue) annualizes your MRR. Investors and acquirers use ARR as the primary input for SaaS valuation multiples.
Formula
ARR = MRR × 12
Multiply monthly recurring revenue by 12 to get annualized run-rate revenue.
Worked example
Inputs: MRR $25,000
- ARR = $25,000 × 12 = $300,000
ARR = $300,000
Benefits & benchmarks
- $1M ARR is a key startup milestone
- Valuation is often quoted as a multiple of ARR
Frequently asked questions
What is ARR?+
ARR is MRR × 12, representing annualized recurring revenue at current run rate.
Why does ARR matter for valuation?+
Most SaaS valuations are expressed as ARR × a market multiple.
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