ARR Calculator — Annual Recurring Revenue & Run Rate

Four numbers come out of one chain of arithmetic, and the whole chain is shown below so you can check it against your own spreadsheet. None of it is proprietary: these are the metric definitions used by SaaS Capital and Bessemer Venture Partners, with the presentation caveat that the U.S. Securities and Exchange Commission attaches to any non-GAAP figure.

1. Normalise the price to a month. A yearly price is divided by twelve before anything else happens, so a business that quotes Rs 1,500 a year and one that quotes Rs 125 a month are compared on the same footing.
2. Apply the billing mix. Customers on an annual plan usually pay less per month. With a as the share billed annually and d as the annual discount, the blended average revenue per account is price × ((1 − a) + a × (1 − d)). The annual prepayment is treated as recurring revenue spread across the twelve months it covers, not booked in the month the cash lands — that is the standard treatment, and it is why a big January renewal month does not show up as a January ARR spike.
3. MRR. Customers × blended monthly ARPA. If you already track MRR, the second tab takes it directly and skips steps 1 and 2.
4. ARR. MRR × 12. That is all ARR is: the recurring book annualised at a point in time. It is not trailing twelve-month revenue and it is not a forecast.
5. Revenue run rate. Period revenue × the number of such periods in a year — 52, 12, 4 or 2. The third tab does this, and the difference from ARR gets its own section below because it is the distinction people most often get wrong.
6. ARPU and ARPA.MRR ÷ customers per month, ARR ÷ customers per year. Run the same division on somebody else's published figures and you learn whether a headline is a seat price or an enterprise contract.
7. Reverse solve. Customers needed = ceil(target ARR ÷ (blended ARPA × 12)). With monthly growth g and monthly churn c, the net multiplier is m = (1 + g)(1 − c) and the time is ceil(ln(needed ÷ today) ÷ ln m), defined only when m > 1. When churn cancels growth the tool says the target is not reachable at those rates rather than printing an infinity.
8. Twelve-month projection. Iterative rather than closed-form, so every row can be checked on its own: each month grows the customer count, then churns it, rounds to a whole customer, and recomputes MRR and ARR. Net new ARR is the difference against the row above.
9. Rule of 40. Annualised growth plus gross margin, against a benchmark of 40. This tool annualises the net multiplier rather than gross growth, because churn has already happened by the time revenue is counted. Shown only when you enter a gross margin, and flagged on the page as a heuristic.

Verified two ways.The headline ARR is computed a second time by a different route — splitting the base into its monthly-billed and annual-billed cohorts and summing each cohort's annual contract value — and the two must agree to floating-point tolerance before the badge appears. Money is rounded at display time only; every intermediate step carries full precision, and every division is guarded against a zero customer count.

These get used interchangeably and they are not the same measure. The gap is where most confusion about a reported headline lives.

They can also diverge for a boring reason: timing. A business that collects most of its annual renewals in one quarter will show a run rate well above its ARR if you annualise that quarter, and well below it if you annualise the next one. ARR spreads the same money evenly; run rate does not. When a figure is published as an "annualised run rate" rather than as ARR, that wording is usually deliberate, and worth reading as such.

Every row is a figure a company published or a named publication reported, with the date and the wording the report itself used. These are self-reported, non-GAAP and unaudited. "ARR", "annualised run rate" and "revenue run rate" are not normalised into each other here, because they are not the same measure.

Glean: The report states the figure includes consumption-based revenue, so it is an annualised run rate rather than pure recurring revenue. Usage revenue moves with how much customers use the product.

The table is short on purpose. A figure ships here only with a dated, citable source — a round number remembered from a news cycle is not good enough for a page people quote. For "how big is big" in the meantime, the milestone ladder in the calculator answers it with arithmetic on your own pricing rather than with someone else's headline.

Every output carries a rupee line at the mid-market rate from this site's own LKR rate feed, with the rate and its date shown beside the figure. That number is what decides two practical things: what the business is actually worth locally, and whether it is anywhere near the Inland Revenue Department's VAT registration threshold of Rs 60,000,000 of annual turnover. An ARR above that figure is a signal to check your registration position, not a conclusion: turnover for VAT purposes is not the same thing as ARR, and how services supplied to overseas customers are treated is a question for the IRD or your accountant. This page makes no claim about that treatment. The VAT calculator and the digital services VAT calculator carry the rates and the registration rules.

• U.S. SEC — Non-GAAP Financial Measures (Reg G / Item 10(e) guidance)
• SaaS Capital — SaaS metric definitions (ARR, MRR, ARPA)
• Bessemer Venture Partners — State of the Cloud metric definitions and the Rule of 40
• Central Bank of Sri Lanka — daily indicative exchange rates
• Inland Revenue Department — Value Added Tax, including the registration threshold
• TechCrunch — Glean, annualised run rate (2026-05-28)

ARR is not set by a regulator, so the first three sources are definitional rather than statutory — they are the industry definitions this tool implements, and the SEC guidance is why the page keeps repeating that ARR is company-defined. The definitions and the reported figures were last checked on 2026-09-23; the next review is due by 2026-12-23.

Also useful alongside this one: CAGR calculator for the growth rate between two ARR figures, profit margin calculator for the margin half of the Rule of 40, break-even calculator for the fixed-cost side, and the remittance rate calculator for what the dollars are worth in rupees after transfer fees.