# What is my ARR?

Computes annual recurring revenue (ARR) from monthly recurring revenue (MRR × 12), with new, expansion, contraction and churned revenue moving it from a starting figure.

- Page: https://www.acalculator.org/finance/arr-calculator
- JSON spec: https://www.acalculator.org/finance/arr-calculator.json
- Version: 6d7a79f12ca9

## Default answer

Example with the default inputs (Amounts are Monthly (MRR), Recurring revenue at the start $5,000.00): Your ARR is $60,000.00, from MRR of $5,000.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| basis | Amounts are | Whether the amounts you enter are monthly (MRR) or yearly (ARR). |
| start | Recurring revenue at the start | Subscription revenue, normalized to a month (MRR) or a year (ARR), at the start of the period. One-time fees do not count. |
| new | New revenue | Optional: recurring revenue from new customers in the period. |
| exp | Expansion | Optional: recurring revenue added by upgrades and add-ons from existing customers. |
| con | Contraction | Optional: recurring revenue lost to downgrades. |
| churn | Churn | Optional: recurring revenue lost when customers cancelled. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| arr | ARR | Annual recurring revenue at the end of the period: MRR × 12. |
| mrr | MRR | Monthly recurring revenue at the end of the period: ARR ÷ 12. |
| netNew | Net new ARR | (New + expansion − contraction − churn), as a yearly amount. Shown when you enter a movement. |
| growth | ARR growth | Net new ARR ÷ ARR at the start × 100. Shown when you enter a movement and the start is above $0. |

## 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.

## Worked examples

1. basis = month, start = $5,000.00 gives arr = $60,000.00, mrr = $5,000.00. 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.
2. basis = month, start = $24,000.00 gives arr = $288,000.00. 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.
3. basis = year, start = $250,000.00, exp = $45,000.00, churn = $30,000.00 gives arr = $265,000.00, mrr = $22,083.33, netNew = $15,000.00, 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.
4. basis = month, start = $20,000.00, new = $2,000.00, exp = $1,000.00, con = $500.00, churn = $1,500.00 gives arr = $252,000.00, mrr = $21,000.00, netNew = $12,000.00, 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).

## FAQ

### What is ARR?

ARR, annual recurring revenue, is the yearly value of the subscription revenue a business expects to keep collecting. It counts recurring payments only, at a point in time, and leaves out one-time fees, services and hardware sales.

### How do I calculate ARR from MRR?

Multiply the monthly recurring revenue by 12. Stripe gives the example of $5,000 of MRR, which is 5,000 × 12 = $60,000 of ARR.

### How is ARR calculated with expansion and churn?

Start from the ARR at the beginning of the period, add new and expansion revenue, and subtract contraction and churned revenue. Stripe’s example: $250,000 + $45,000 of expansion − $30,000 of churn = $265,000 of ARR, a growth of 6%.

### How do I count a yearly plan in MRR?

Divide it by 12. A $1,200 yearly subscription adds $100 to MRR and $1,200 to ARR. A plan billed every quarter adds its payment ÷ 3 to MRR, or its payment × 4 to ARR.

### How do I get MRR from my customers?

Add up each active subscription’s monthly amount. With every customer on the same plan, multiply the customers by the monthly price: 300 customers at $80 a month is $24,000 of MRR, so ARR is $288,000.

### What is the difference between ARR and revenue?

Revenue on the income statement counts everything billed in the year, including one-time setup fees and services. ARR is a snapshot of the recurring part only, so it can be higher or lower than the year's revenue.

### Should discounts count in ARR?

Count what customers will pay going forward. A temporary promotional price that will end overstates or understates what you will collect, so use the price customers will keep paying.

## 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)