ARR Calculator
A run rate, not last year's revenue.
ARR
$600,000
$1,077,514 exit ARR at current growth
ARR is MRR times twelve — a run rate, not a forecast and not last year's revenue. One-off revenue does not belong in it, and including setup fees or professional services is the most common way ARR gets inflated.
How the ARR Calculator works
ARR is MRR times twelve — a forward-looking run rate rather than a record of what was earned. Including setup fees or professional services in it is the most common way ARR gets inflated, and it is the first thing an acquirer strips out.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference between ARR and revenue?
ARR annualises the current recurring run rate. Revenue records what was actually earned in a period. A business can have £600,000 ARR and £400,000 of revenue in the year that produced it.
What is exit ARR?
The ARR at the end of a period, which is what growth is usually measured on. It is far more informative than average ARR across a year.
Should one-off revenue count?
No. If it does not recur, it is not recurring revenue. Setup fees, implementation and consultancy all fail that test however reliable they are.
How do investors use ARR?
As the basis for a revenue multiple, which is why definitions matter so much. Inflating ARR with non-recurring items gets found in diligence and costs more credibility than the number was worth.