What this calculator measures
Projects annual recurring revenue based on current monthly metrics.
Common use cases
Use this model when the inputs describe the same decision, period and customer or product scope.
- Convert recurring monthly revenue into ARR and compare an ARR target.
- Use the result with the recorded inputs: Monthly recurring revenue, Target ARR.
- Compare multiple scenarios before making a marketing decision.
Formula
ARR = MRR × 12
ARR is a run-rate metric, not recognized accounting revenue.
Worked example
$10,000 monthly recurring revenue equals $120,000 ARR.
How to interpret the result
Provides a clear benchmark for valuation and long-term SaaS forecasting.
Assumptions and limitations
- MRR remains stable throughout the year without major spikes or drops.