Plainhub
Free tool

ARR calculator

Annual recurring revenue from your MRR, plus net new ARR from the four movements that change it each month. No signup, nothing stored.

ARR
€504,000
MRR x 12
Net new ARR
+€68,400
this month, annualized
ARR next month
€572,400
if movements repeat

Your net revenue retention is running at 99%. Above 100% means the base grows even with zero new customers.

The ARR formula

ARR is MRR annualized, and net new ARR is the movements annualized:

ARR         = MRR x 12
net new ARR = (new + expansion - contraction - churn) x 12

The headline ARR is easy. The movements are where the truth is: a company can grow ARR on new logos while quietly bleeding it through churn, and only the net figure shows it. When expansion beats contraction plus churn, your base grows even with zero new customers, which is the definition of net revenue retention above 100 percent. Read what is ARR and MRR vs ARR.

Common questions

What is the ARR formula?

ARR = MRR x 12. Annual recurring revenue is simply monthly recurring revenue annualized, so a company at 42,000 euros of MRR has 504,000 euros of ARR.

How do you calculate ARR from MRR?

Multiply current MRR by 12. Do not add one-time fees, setup charges or usage overages, because ARR only counts revenue that recurs every year.

What is net new ARR?

The change in ARR over a period: (new MRR + expansion - contraction - churn) x 12. It tells you whether the recurring base is growing or shrinking before any single big deal flatters the headline number.

What is the difference between ARR and revenue?

Revenue is everything you billed, including one-off projects and usage. ARR is only the recurring, contracted portion annualized. ARR predicts next year; total revenue describes last month.

Track the movements, not just the total

Plainhub keeps MRR, ARR and the four movements live as you record revenue, so net new ARR is always current instead of rebuilt in a spreadsheet each month.

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