About arr calculator
Annual recurring revenue (ARR) is MRR multiplied by 12. It is used to compare subscription businesses and track growth.
Projection
With a steady monthly growth rate g, MRR after n months is MRR × (1 + g)ⁿ. At 5% monthly growth, ARR grows about 80% in a year.
What counts
Include only recurring subscription revenue. One-time setup fees and usage spikes are not part of ARR.
A worked example
A business with an MRR of ₹5 lakh has an ARR of ₹60 lakh. If MRR grows 4 percent a month, it reaches about ₹8 lakh after 12 months, so ARR becomes about ₹96 lakh, an increase of 60 percent.
Reading growth
Investors often look at how fast ARR grows and how much comes from existing customers. Steady monthly growth compounds quickly over a year.
