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Bookings vs ARR Calculator

Compare bookings vs ARR (and cash) for a contract with term length and one-time fees.

Bookings measure contracted value signed in a period. ARR is a recurring run-rate snapshot (typically MRR x 12). Cash receipts can differ again depending on billing terms.

This calculator turns a contract into comparable metrics: bookings (signed value), recurring run-rate (ARR), and cash collected (if prepaid).

Use bookings for sales performance, ARR for recurring scale, and cash for runway planning.

Prefer an explanation- Read the guide.

Need definitions- Browse the glossary.

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Total contract value (TCV)

Contract term (months)

One-time fees / services (optional)

Paid upfront (cash %)

100% for annual prepay; 0% if billed monthly (cash spread out).

Billing frequency (months)

1 = monthly, 3 = quarterly, 12 = annual.

Target ARR (optional)

Used to estimate required contract value (TCV).

Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:

$110,000.00

Total contract value (TCV): $120,000
Contract term (months): 12
One-time fees / services (optional): $10,000
Paid upfront (cash %): 100%
Billing frequency (months): 12
Target ARR (optional): $200,000

How to calculate

Enter the total contract value (TCV) and the term length (months).
Enter any one-time fees/services included in the contract.
Compute recurring value = TCV - one-time.
Compute MRR = recurring / term months, then ARR = MRR x 12.
Compare cash collected upfront vs remaining billed cash to understand timing.

Formula

Bookings = TCV; ARR = ((TCV - one-time) / term months) x 12; Cash upfront = TCV x prepaid %

ARR is a run-rate snapshot; it is not recognized revenue.
Recurring portion excludes one-time fees and services.
Cash collected depends on billing terms; this model uses 'paid upfront %' as a simplification.

FAQ

Is bookings the same as ARR-

No. Bookings measure contracted value signed in a period. ARR measures recurring run-rate (MRR x 12). They answer different questions.

Why can bookings be much higher than ARR-

Bookings can include the full contract term and one-time items, while ARR only reflects recurring run-rate. Annual prepay can also increase bookings and cash without changing run-rate proportionally.