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ARR vs MRR Calculator
Convert ARR to MRR (and MRR to ARR) and understand the ARR vs MRR relationship.
ARR and MRR are the same run-rate at different time units. ARR is typically MRR x 12; MRR is ARR / 12.
This calculator converts between ARR and MRR and helps you sanity-check consistency when you have both numbers.
Prefer an explanation- Read the guide.
ARR vs MRR: definitions, formulas, and how to convertARR guide: meaning, formula, MRR, bookings, and growthMRR: what it means (and how to track it cleanly)MRR Forecast Formula: Example, Template, and Monthly Bridge
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Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
$2,400,000.00
- MRR
- $200,000
- ARR
- $2,400,000
How to calculate
- Enter MRR to compute ARR (MRR x 12).
- Enter ARR to compute MRR (ARR / 12).
- If you enter both, compare the implied numbers to spot definition drift.
Formula
ARR = MRR x 12; MRR = ARR / 12
- Assumes you are converting a recurring run-rate (not recognized revenue).
- Assumes ARR is annualized from monthly run-rate (12x) rather than a contracted total.
FAQ
Is ARR the same as annual revenue-
Not always. ARR is a run-rate snapshot of recurring revenue. Annual revenue is what you recognize over a year and can include one-time items.
Should ARR always equal MRR x 12-
If both are defined as recurring run-rate, yes. If they don't match, it usually means definitions differ (one-time items, active base, annualization) or the numbers are from different dates.
Common mistakes
- Including one-time fees or services in recurring run-rate.
- Mixing recognized revenue (accounting) with run-rate metrics (MRR/ARR).
- Using ARR as a promise of next-12-month revenue (it's a snapshot).
How to interpret
ARR vs MRR tips
- Use MRR for monthly momentum and decomposition (new/expansion/churn).
- Use ARR to compare scale and for many efficiency metrics (burn multiple, magic number).
- Avoid mixing bookings/cash timing into run-rate metrics.
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Quick checks
- Keep time units consistent (monthly vs annual) across inputs and outputs.
- Segment by cohort/channel/plan before trusting a blended average.
- Use the related guide to avoid common definition and denominator mismatches.