How to Build an ARR Calculator
Annual Recurring Revenue (ARR) is the cornerstone metric for subscription businesses. An ARR calculator helps founders, investors, and finance teams project yearly revenue from monthly subscriptions.
What is an ARR Calculator?
ARR represents the annualized value of recurring subscription revenue. It's calculated by multiplying Monthly Recurring Revenue (MRR) by 12, or by summing all active annual subscription values. ARR excludes one-time fees, variable usage charges, and non-recurring revenue.
The Formula
ARR = MRR × 12 ARR = Sum of all active annual subscription values Net ARR = Starting ARR + New ARR + Expansion ARR - Churned ARR
ARR calculator
Annualize your current monthly recurring revenue run rate.
- Annual recurring revenue
- $120,000.00
- Monthly run rate
- $10,000.00
Assumptions: MRR stays constant for 12 months. One-time fees, usage revenue, and non-recurring services are excluded.
Estimate only. Results use the inputs and assumptions shown, exclude taxes and fees unless entered, and are not financial advice.
Code Example
function calculateARR(subscriptions) {
return subscriptions.reduce((total, sub) => {
if (sub.billingCycle === 'monthly') {
return total + (sub.amount * 12);
}
return total + sub.amount;
}, 0);
}
function calculateNetARR(starting, newARR, expansion, churned) {
return starting + newARR + expansion - churned;
}How to Build It
- 1
Create input fields for MRR or individual subscription amounts
- 2
Add billing cycle selector (monthly/annual) for each subscription
- 3
Implement the ARR calculation formula
- 4
Display breakdown showing contribution from each subscription
- 5
Add export functionality for financial reports
Key Features to Include
Support both MRR-based and subscription-level calculations
Show ARR growth rate and projections
Calculate net new ARR (new + expansion - churn)
Export results for investor decks and board meetings
Historical tracking to visualize ARR trends
Monetization Strategies
Freemium model: basic calculator free, advanced projections paid
Lead generation for SaaS financial tools
Embed in startup resource sites for affiliate revenue
Offer API access for SaaS platforms to integrate
Recommended Tech Stack
Frontend
React or Next.js for responsive UI with real-time calculations
Backend
Client-side only for basic calculators; add API routes for saving/sharing
Hosting
Vercel or Netlify for fast, global deployment
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