ARR / MRR / ARPA / ACV Calculator

What is ARR/MRR?

ARR and MRR normalize recurring revenue into monthly and annual run-rate views. ARPA and ACV help you translate recurring revenue into per-account and per-contract economics for planning and board slides.

Formula

Version v1. See methodology and the public formula repo for sources and change history.

Worked example

Using the default example inputs (Monthly recurring revenue: $42,000; Paying accounts: 84; Total annual contract value: $840,000; Annual contracts: 42), ARR/MRR equals $504,000 (ARR). Use ARR as a run-rate metric and label contract-derived revenue separately when needed.

What good looks like

Use MRR for operating cadence and ARR for annual planning. Label contract-based revenue separately when mixing subscription and services revenue.

Directional guidance only, not a cohort benchmark claim. Premium cohort bands appear when sample thresholds are met for your profile.

FAQ

What is ARR/MRR?

ARR and MRR normalize recurring revenue into monthly and annual run-rate views. ARPA and ACV help you translate recurring revenue into per-account and per-contract economics for planning and board slides.

What is the ARR/MRR formula?

ARR = MRR * 12; ARPA = MRR / paying accounts; ACV = annual contract value / annual contracts

ARR vs booked ACV?

ARR is a run-rate from recurring revenue; ACV here is total annual contract value divided by contract count, useful when deals are annual or multi-year.

Do one-time fees belong in MRR?

Generally no. Exclude non-recurring implementation or services unless they are core to the subscription model.

How is ARPA calculated?

MRR divided by paying accounts in the period. Use the same account definition you use for churn and expansion.