{
  "id": "arr",
  "version": "6d7a79f12ca9",
  "status": "published",
  "name": "ARR Calculator",
  "question": "What is my ARR?",
  "summary": "Computes annual recurring revenue (ARR) from monthly recurring revenue (MRR × 12), with new, expansion, contraction and churned revenue moving it from a starting figure.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/arr-calculator",
  "markdown": "https://www.acalculator.org/finance/arr-calculator.md",
  "kind": "function",
  "method": "Recurring revenue at the end = revenue at the start + new + expansion − contraction − churn; ARR = MRR × 12 (amounts typed per year are ARR already).",
  "assumptions": [
    "Only recurring subscription revenue counts: one-time fees, services and hardware sales are left out.",
    "Each subscription is normalized to a month for MRR (a $1,200 yearly plan is $100 of MRR) or to a year for ARR.",
    "Arithmetic is exact on the typed decimals; money shows to the cent and growth to 2 decimals, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "basis": {
        "title": "Amounts are",
        "description": "Whether the amounts you enter are monthly (MRR) or yearly (ARR).",
        "type": "string",
        "enum": [
          "month",
          "year"
        ]
      },
      "start": {
        "title": "Recurring revenue at the start",
        "description": "Subscription revenue, normalized to a month (MRR) or a year (ARR), at the start of the period. One-time fees do not count.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "new": {
        "title": "New revenue",
        "description": "Optional: recurring revenue from new customers in the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "exp": {
        "title": "Expansion",
        "description": "Optional: recurring revenue added by upgrades and add-ons from existing customers.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "con": {
        "title": "Contraction",
        "description": "Optional: recurring revenue lost to downgrades.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "churn": {
        "title": "Churn",
        "description": "Optional: recurring revenue lost when customers cancelled.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "arr": {
      "label": "ARR",
      "description": "Annual recurring revenue at the end of the period: MRR × 12.",
      "format": "money"
    },
    "mrr": {
      "label": "MRR",
      "description": "Monthly recurring revenue at the end of the period: ARR ÷ 12.",
      "format": "money"
    },
    "netNew": {
      "label": "Net new ARR",
      "description": "(New + expansion − contraction − churn), as a yearly amount. Shown when you enter a movement.",
      "format": "money"
    },
    "growth": {
      "label": "ARR growth",
      "description": "Net new ARR ÷ ARR at the start × 100. Shown when you enter a movement and the start is above $0.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "basis": "month",
      "start": 5000
    },
    "outputs": {
      "arr": 60000,
      "mrr": 5000
    },
    "text": "Your ARR is $60,000.00, from MRR of $5,000.00."
  },
  "examples": [
    {
      "given": {
        "basis": "month",
        "start": 5000
      },
      "expect": {
        "arr": 60000,
        "mrr": 5000
      },
      "source": "Stripe, \"What is ARR, and how do you calculate it?\" (ARR = MRR × 12; $5,000 of MRR is $60,000 of ARR; 300 customers × $80 = $24,000 MRR, × 12 = $288,000; starting ARR $250,000 + $45,000 expansion − $30,000 churn = $265,000). https://stripe.com/resources/more/what-is-arr-and-how-do-you-calculate-it: 5,000 × 12 = 60,000"
    },
    {
      "given": {
        "basis": "month",
        "start": 24000
      },
      "expect": {
        "arr": 288000
      },
      "source": "Stripe, \"What is ARR, and how do you calculate it?\" (ARR = MRR × 12; $5,000 of MRR is $60,000 of ARR; 300 customers × $80 = $24,000 MRR, × 12 = $288,000; starting ARR $250,000 + $45,000 expansion − $30,000 churn = $265,000). https://stripe.com/resources/more/what-is-arr-and-how-do-you-calculate-it: 300 × 80 = 24,000 MRR; 24,000 × 12 = 288,000"
    },
    {
      "given": {
        "basis": "year",
        "start": 250000,
        "exp": 45000,
        "churn": 30000
      },
      "expect": {
        "arr": 265000,
        "mrr": 22083.333333333332,
        "netNew": 15000,
        "growth": 6
      },
      "source": "Stripe, \"What is ARR, and how do you calculate it?\" (ARR = MRR × 12; $5,000 of MRR is $60,000 of ARR; 300 customers × $80 = $24,000 MRR, × 12 = $288,000; starting ARR $250,000 + $45,000 expansion − $30,000 churn = $265,000). https://stripe.com/resources/more/what-is-arr-and-how-do-you-calculate-it: 250,000 + 45,000 − 30,000 = 265,000; hand calculation in content.mdx: 15,000 ÷ 250,000 × 100 = 6%; 265,000 ÷ 12 = 22,083.33…"
    },
    {
      "given": {
        "basis": "month",
        "start": 20000,
        "new": 2000,
        "exp": 1000,
        "con": 500,
        "churn": 1500
      },
      "expect": {
        "arr": 252000,
        "mrr": 21000,
        "netNew": 12000,
        "growth": 5
      },
      "source": "Stripe Support, \"Understanding Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR)\" (MRR sums the monthly-normalized amounts of subscriptions; ARR = MRR × 12; MRR moves by new subscriptions, expansion, contractions and churn). https://support.stripe.com/questions/understanding-monthly-recurring-revenue-(mrr)-and-annual-recurring-revenue-(arr); hand calculation in content.mdx: 20,000 + 2,000 + 1,000 − 500 − 1,500 = 21,000 MRR; × 12 = 252,000"
    }
  ],
  "sources": [
    "Stripe, \"What is ARR, and how do you calculate it?\": ARR = MRR × 12; $5,000 of MRR is $60,000 of ARR; 300 customers × $80 = $24,000 of MRR and $288,000 of ARR; starting ARR $250,000 + $45,000 of expansion − $30,000 of churn = $265,000; one-time fees, services and hardware sales are left out. https://stripe.com/resources/more/what-is-arr-and-how-do-you-calculate-it (retrieved 2026-10-19)",
    "Stripe Support, \"Understanding Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR)\": MRR sums the monthly-normalized amounts of active subscriptions (a $1,200 yearly plan counts $100); ARR is MRR × 12; MRR moves by new subscriptions, expansion, contractions and churn. https://support.stripe.com/questions/understanding-monthly-recurring-revenue-(mrr)-and-annual-recurring-revenue-(arr) (retrieved 2026-10-19)"
  ],
  "related": [
    "nrr",
    "churn-rate",
    "customer-lifetime-value",
    "cac"
  ],
  "changelog": []
}