ARR Calculator (Annual Recurring Revenue)
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.
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.
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.
Launch Shopify subscriptions without RecurX transaction fees
Start free on Shopify, or book a migration audit before changing subscription apps.