ARR Calculator (Annual Recurring Revenue)
Calculate your Annual Recurring Revenue instantly. Enter your active subscribers and average subscription price to see ARR, the underlying MRR, and your net new MRR.
ARR = MRR × 12, where MRR = active subscribers × average monthly price. 1,000 subscribers at $30/month is $30,000 MRR and $360,000 ARR. Model your own numbers below.
Estimates only. Annual plans should be normalized to a monthly price (annual ÷ 12). RecurX reports these metrics automatically from your live Shopify subscription data.
How to calculate ARR
ARR annualizes your recurring revenue base:
- ARR = MRR × 12
- Or sum each subscription’s annualized value (monthly price × 12, or the full annual-plan price)
- Exclude one-time orders, setup fees, shipping, and tax
ARR vs. total revenue
ARR is not the same as total revenue. It measures only the predictable, recurring subscription base — the number investors and operators use to value a subscription business. Total revenue also includes one-time sales and is usually larger.
Frequently asked questions
How do you calculate ARR?
The simplest method is ARR = MRR × 12. Alternatively, sum the annualized value of every active subscription: monthly plans contribute (monthly price × 12) and annual plans contribute their full yearly price.
What does $1 million ARR mean?
It means active subscriptions generate $1,000,000 of predictable revenue per year at the current run rate — about $83,333 in MRR. It reflects the recurring base, not a single month’s cash.
Learn more
- Annual Recurring RevenueAnnual Recurring Revenue (ARR) is the total amount of predictable, recurring revenue a subscription business expects to receive from its active subscriptions over a 12-month period, normalized to a yearly figure.
- Monthly Recurring RevenueMonthly Recurring Revenue (MRR) is the total predictable revenue a subscription business earns from all active subscriptions in a given month, normalized to a monthly amount.
- Net Revenue RetentionNet Revenue Retention (NRR), also called net dollar retention, is the percentage of recurring revenue retained from existing customers over a period, including expansion and after subtracting downgrades and churn.
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