ARR Calculator
Total monthly subscription revenue across all active customers
Average monthly revenue per customer. MRR = Customers × ARPU
Growth & Churn Projection
Enter Your Revenue Data
Choose a calculation mode, enter your MRR, customer data, ARR components, or pricing tiers to see your Annual Recurring Revenue and SaaS health metrics.
How to Use the ARR Calculator
Choose Your Calculation Mode
Select Simple if you know your MRR or customer count and ARPU. Select Component (Bridge) if you have detailed ARR movement data — new bookings, expansions, churn, and contractions. Select Multi-Tier Plans if you have multiple pricing plans and want to build up your ARR from your pricing table.
Enter Your Revenue Data
In Simple mode, enter your MRR directly or enter your total customer count and monthly ARPU. In Component mode, enter your Beginning ARR and each ARR movement component. In Multi-Tier mode, enter each plan's name, price, billing cycle (monthly or annual), and customer count — add as many tiers as you need.
Set Growth and Churn Rates
Use the sliders or number inputs to set your expected Annual Growth Rate (new ARR percentage) and Annual Churn Rate (lost ARR percentage). These drive the Projected ARR, Net New ARR, CLV, and 12-month projection chart. Typical healthy SaaS targets are 20–50% growth and under 5–10% churn annually.
Review Results and Export
Review your ARR, MRR, NRR, CLV, valuation multiples, and ARR Waterfall Bridge. The color-coded benchmark bars show how your churn and NRR compare to industry standards. Use the Export CSV button to download a full summary for board decks, investor updates, or financial models.
Frequently Asked Questions
What is the difference between ARR and MRR?
MRR (Monthly Recurring Revenue) is the total recurring subscription revenue in a single month. ARR (Annual Recurring Revenue) is simply MRR multiplied by 12 — it annualizes your revenue for easier year-over-year comparison and valuation. For monthly subscription businesses, ARR = MRR × 12. For businesses with annual contracts, ARR is the total contract value divided by the contract length in years. Both metrics exclude one-time fees, professional services, and non-recurring charges. MRR is more useful for month-to-month operational tracking; ARR is the standard for fundraising, valuation, and investor reporting.
What is a good ARR growth rate for a SaaS company?
Growth rate expectations vary significantly by stage. Early-stage SaaS startups (under $1M ARR) should target 15–20% monthly growth to reach milestones quickly. At $1–10M ARR, 10–15% monthly is healthy. At $10–50M ARR, top-quartile growth is 3–5% monthly (roughly 40–80% annually). At $50M+ ARR, 30–50% annual growth is considered excellent. The T2D3 framework (Triple, Triple, Double, Double, Double) sets a benchmark for reaching $100M ARR in 7–8 years. Below-average growth at any stage is typically under 20% annually. Context matters — compare yourself to SaaS companies of similar scale, not absolute numbers.
What is Net Revenue Retention (NRR) and why does it matter?
Net Revenue Retention (NRR) measures how much revenue you retain from your existing customer base over a period, including expansion and contraction. NRR = (Beginning MRR + Expansion MRR − Contraction MRR − Churned MRR) / Beginning MRR × 100. An NRR above 100% means your existing customers are spending more over time — your revenue grows even without acquiring any new customers. This is the hallmark of strong product-market fit and effective customer success. World-class SaaS companies like Snowflake, Twilio, and Datadog historically maintained NRR above 120–130%. NRR below 100% means churn and downgrades are outpacing expansions, which is a red flag for long-term sustainability.
How do ARR valuation multiples work?
Investors value SaaS companies as a multiple of ARR because ARR is predictable and comparable across companies. The multiple reflects growth rate, NRR, gross margin, and market conditions. Established SaaS companies growing 20–30% annually with NRR around 100–110% typically trade at 5–10× ARR. High-growth SaaS companies growing 50%+ annually with strong NRR (110%+) can command 15–30× ARR or more. During the 2021 SaaS bubble, some hypergrowth companies traded at 40–60× ARR. Post-2022 market correction, multiples compressed significantly. Always validate current market multiples with recent comparable transactions or public SaaS company data from sources like Bessemer Venture Partners or KeyBanc Capital Markets.
What is the ARR Waterfall Bridge and when do I use it?
The ARR Waterfall (or Bridge) chart shows how your ARR changed from one period to another by breaking down each contributing factor: New ARR from new customer bookings, Expansion ARR from upsells and seat additions, Reactivation ARR from returning churned customers, minus Contraction ARR from downgrades, and minus Churned ARR from cancellations. Ending ARR = Beginning ARR + New + Expansion + Reactivation − Contraction − Churned. This view is standard in SaaS board decks and quarterly investor reports. It immediately shows whether your growth is being driven by new logo acquisition, existing customer expansion, or both — and whether churn is accelerating or decelerating.
How is Customer Lifetime Value (CLV) calculated from ARR data?
CLV (also called LTV) estimates the total revenue you can expect from a single customer over their entire relationship with your company. The simplest SaaS CLV formula is: CLV = Monthly ARPU / Monthly Churn Rate. For example, if your ARPU is $200/month and your monthly churn rate is 2%, your CLV = $200 / 0.02 = $10,000. This means each customer is worth approximately $10,000 in lifetime revenue. To be profitable, your CLV must significantly exceed your Customer Acquisition Cost (CAC). A CLV:CAC ratio of 3:1 or higher is generally considered healthy for SaaS businesses. Higher CLV relative to CAC means faster payback periods and more sustainable unit economics.