Calculate annual recurring revenue (ARR) — enter MRR directly, or use customers and monthly ARPU to derive ARR. Both methods update live so you can model subscription growth.
— or calculate from customers —
Frequently Asked Questions
What is ARR?
Annual recurring revenue (ARR) = MRR × 12. It normalizes subscription revenue to a yearly figure for forecasting and valuation.
Can I calculate ARR without knowing MRR?
Yes — enter customers and monthly ARPU. ARR = Customers × ARPU × 12. This tool supports both direct MRR input and the customer-based method.
What is the difference between ARR and total revenue?
ARR counts only recurring subscription revenue. One-time fees, services, and non-subscription sales are excluded from ARR.
How does ARR relate to MRR?
Use the Monthly Recurring Revenue Calculator to model MRR from customer count, then annualize here.
Is this tool free and does it work on mobile?
Yes on both counts. The Annual Recurring Revenue Calculator on draft21 is completely free with no sign-up required and works on all devices.