📈 SaaS ARR Calculator

Calculate Annual Recurring Revenue two ways: from MRR, or by listing your subscription contracts. Get ARR per customer, implied MRR, growth rate, and a contract value tier breakdown.

Current MRR ($)

Number of Customers

Last Year's ARR ($) (for growth rate)

Frequently Asked Questions

What is ARR?

Annual Recurring Revenue (ARR) is the annualized value of all active subscription contracts. It is the single most important metric for SaaS valuation and is calculated as MRR × 12 for monthly subscriptions.

How is ARR different from total revenue?

Total revenue includes one-time fees, setup charges, professional services, and other non-recurring income. ARR includes only the predictable, recurring subscription component — making it more useful for forecasting and valuation.

What ARR multiple is used for SaaS valuations?

SaaS companies are typically valued at 4-12× ARR depending on growth rate, margins, and market conditions. High-growth companies (>50% YoY ARR growth) can command 10-20× or more. Declining companies may trade at 1-3×.

How do I calculate ARR from annual contracts?

Sum the annual contract values of all active subscriptions. For multi-year contracts, use only the annual portion (total contract value ÷ contract years). Exclude one-time fees and professional services.

Should I include usage-based revenue in ARR?

This is debated. Conservative practice excludes variable usage revenue and includes only committed subscription amounts. Some companies include a baseline usage estimate. Be consistent in your methodology for meaningful year-over-year comparisons.