ARR Calculator.

Annual Recurring Revenue is MRR projected forward 12 months. The metric venture-backed SaaS lives by. Enter monthly customers and ARPU, get ARR plus a 12-month forward curve.

For pure-annual contracts, sum contract values directly instead. Mixing both is the right answer for hybrid pricing, and this tool handles both flows.

Inputs
USD
ARR result
Annual Recurring Revenue
$117,600.00
12-month projection
All metrics from your inputs
MRR$9,800.00
ARR$117,600.00
ARPU$49.00
LTV$980.00
CAC$160.00
LTV:CAC6.13x
CAC Payback4.1 months
Monthly churn (counts)4.00%
NRR104.00%
Year-end MRR$12,082.35

Benchmark verdicts use smb thresholds from OpenView SaaS Benchmarks 2024.

The formula

How ARR
is calculated.

3 steps. Same formula every reputable SaaS dashboard uses: ChartMogul, Baremetrics, ProfitWell.

  1. 01

    Compute MRR

    Sum monthly recurring revenue across all subscriptions.

    customers × ARPU
  2. 02

    Multiply by 12

    ARR projects MRR forward over a year assuming churn and growth net to zero. It’s a rate, not actual booked revenue.

    MRR × 12
  3. 03

    Annualise annual contracts directly

    For pure-annual contracts, sum contract values directly instead of multiplying MRR. Mixing both keeps numbers honest.

    Σ annual contract value
Industry data

No universal benchmark.

Raw ARR values vary too much by ICP, pricing tier, and business model to compare across companies. Compare against funding stage benchmarks (e.g., $1M ARR Series A).

Examples

Worked examples.

Three real scenarios. Inputs in plain English, the formula applied, the answer.

Scenario 01

Pre-Series A SaaS

300 customers × $99 ARPU.

ARR = 300 × $99 × 12 = $356K. Approaching Series A range ($1M ARR).
Scenario 02

Series A milestone

2,500 customers × $33 ARPU.

ARR ≈ $990K. One feature release away from $1M ARR.
Scenario 03

Series B candidate

1,000 customers × $850 ARPU (mid-market).

ARR = $10.2M. Series B benchmarks satisfied.
Questions

Frequently asked.

Everything else worth knowing about Annual Recurring Revenue.

ARR communicates scale to investors and benchmarks against funding rounds (e.g., $1M ARR Series A, $10M ARR Series B). MRR is better for week-over-week ops. Same number, different audience.

For pure-annual contracts billed up-front, ARR equals contract value at signing. For monthly subs, ARR is MRR × 12. Mixing both: convert monthly MRR × 12, add annual contract values directly, sum.

The formulas are textbook standard, used by ChartMogul, Baremetrics, OpenView, and most SaaS investors. Your numbers will be accurate to the inputs you provide. Garbage in, garbage out: pull the numbers from your billing system, not your gut.

MRR, ARR, ARPU: monthly. Churn, NRR: monthly with quarterly trend review. CAC, LTV, LTV:CAC, CAC payback: quarterly. They’re lagging and noisy on a monthly basis. Growth projection: refresh quarterly when you change your roadmap.

A 4% monthly churn rate is excellent for bootstrapped indie SaaS but alarming for enterprise SaaS. CAC payback of 18 months is dangerous for SMB but normal for enterprise. Stage-aware benchmarks tell you what good looks like at your size, not at someone else’s.

Yes, with adaptation. For usage-based pricing, normalise to monthly recurring billed amount before computing MRR. For hybrid (base + usage), include the recurring base in MRR and treat overage as expansion in NRR. The formulas don’t change. Only how you measure ARPU does.

Gross = before any offsetting moves. Net = after expansion or other positive flows offset losses. Gross churn ≤ net churn (net can be negative, meaning expansion outpaces loss). NRR includes expansion (net); GRR excludes it (gross). Both are reported in best SaaS dashboards.

No, never. Every metric here is paying-customers-only. Including trials inflates customer counts, deflates ARPU, and breaks comparability against industry benchmarks. Trials become "customers" the moment they convert to paid.

Investors care about: ARR (scale), MRR growth rate (momentum), monthly churn (retention), LTV:CAC (unit economics), and NRR if you have one. Seed: $0-100K ARR with strong growth. Series A: $1M+ ARR, sub-5% monthly churn, LTV:CAC 3x+. Series B: $5-15M ARR, NRR 110%+.

They’re a system. ARPU × customers = MRR. MRR × 12 = ARR. Customers × monthly churn = lost MRR. CAC + LTV + churn = unit economics. NRR + growth rate + churn = trajectory. Track them together. Improving one in isolation can mask trade-offs elsewhere.

Yes. Every tool on this page is free, no signup, no email gate, no upsell to a paid version. They’re built by FoundStep to help indie SaaS founders ship better businesses.

Benchmarks reference 2025-2026 data from ChartMogul Open Benchmarks, Baremetrics Open Benchmarks, OpenView SaaS Benchmarks 2024, and SaaS Capital’s annual report. Citations are linked under each benchmark table. We refresh annually.

All tools

Every SaaS metric calculator.

MRR
MRR Calculator
Calculate Monthly Recurring Revenue in seconds. Project MRR over 12 months with growth and churn. Compare against industry benchmarks. Free.
ARR
ARR Calculator
Calculate Annual Recurring Revenue from MRR or annual contracts. Project ARR growth. Compare against funding-stage benchmarks. Free SaaS tool.
Churn Rate
Churn Rate Calculator
Calculate monthly customer churn rate from start/end customer counts. Compare against ChartMogul SaaS benchmarks. Free, no signup.
LTV
LTV Calculator
Calculate Customer Lifetime Value (LTV) using contribution-margin method. Pair with CAC to evaluate unit economics. Free SaaS tool.
CAC
CAC Calculator
Calculate Customer Acquisition Cost (CAC) from total sales + marketing spend and new paying customers. Free SaaS tool, no signup.
LTV:CAC
LTV:CAC Ratio Calculator
Calculate LTV to CAC ratio - the textbook SaaS unit economics gauge. Compare against industry benchmarks. Free, no signup.
CAC Payback
CAC Payback Period Calculator
Calculate CAC payback period in months. Best-in-class SaaS recovers in <12 months. Free industry benchmarks included.
NRR
NRR Calculator
Calculate Net Revenue Retention from starting MRR + expansion - contraction - churn. Compare against best-in-class SaaS benchmarks.
ARPU
ARPU Calculator
Calculate Average Revenue Per User (ARPU) from MRR and customer count. Track upmarket motion and pricing trends. Free SaaS tool.
Growth Projection
SaaS Growth Calculator
Project SaaS MRR over 12 months with monthly growth and churn rates. Visualise compound impact. Free tool, no signup.

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ARR Calculator (2026) - Annual Recurring Revenue | FoundStep | FoundStep