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ARR calculator

Turn your monthly recurring revenue into an annual run-rate figure.

ARR calculator

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Annual recurring revenue$420,000
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Definition

What is annual recurring revenue (arr)?

The value of an agency's recurring revenue expressed over a year - essentially MRR multiplied by twelve. A headline measure of the recurring book.

For example, an agency with $35,000 in MRR has $420,000 in ARR. Quoting the annual figure makes the size of the recurring book obvious to the owner, a lender or a buyer in a way a monthly number sometimes does not.

Why it matters to agencies: ARR is the number investors and buyers anchor on when they value an agency, because recurring revenue is worth far more than one-off project income. Tracking ARR keeps the focus on building a durable, sellable book rather than chasing the next project.

How to calculate

ARR = MRR × 12

Counts only recurring revenue - exclude one-off project fees.

What good looks like

ARR is simply MRR x 12 - only count genuinely recurring revenue (retainers, subscriptions), not one-off projects, or it overstates the business.

Questions

Common questions

What is annual recurring revenue (ARR)?

The value of an agency's recurring revenue expressed over a year - essentially MRR multiplied by twelve. A headline measure of the recurring book.

What is the difference between ARR and MRR?

ARR is the annual view and MRR the monthly view of the same recurring revenue - ARR is simply MRR multiplied by twelve.

Does ARR include one-off project fees?

No - ARR counts only recurring revenue from retainers and subscriptions; one-off projects are tracked separately.

Why do buyers care about ARR?

Recurring revenue is predictable, so a high, growing ARR makes an agency more valuable and easier to sell than one living on one-off projects.

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Want your metrics dashboard built for you?

Forge builds your metrics dashboard and looks after it - tracking annual recurring revenue (arr) live for your whole agency, built around the tools you already use. No spreadsheets, no code on your side.