About the MRR to ARR Projection Calculator
What is the MRR to ARR Projection Calculator?
This ARR projection calculator grows your current MRR month by month at a net rate: new and expansion MRR minus revenue churn, both as a share of MRR.
It shows projected MRR and ARR at the end of the period, revenue recognised along the way and the implied annual growth rate.
How to use the MRR to ARR Projection Calculator
- Current MRR (₹) (sample: 20,00,000)
- New + Expansion MRR per Month (% of MRR) (sample: 8)
- Revenue Churn per Month (% of MRR) (sample: 2)
- Months to Project (sample: 12)
- Press Project ARR (results also refresh as you type). The result card shows the Projected ARR, along with Projected MRR, Current ARR, Revenue recognised over the period and Implied annual growth rate.
Formula used
MRRₘ = MRRₘ₋₁ × (1 + New % − Churn %)
- Projected ARR = final MRR × 12
- Annual growth = (1 + net monthly rate)¹² − 1
A 6% net monthly growth rate roughly doubles ARR in a year.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Current MRR (₹) | 20,00,000 |
| New + Expansion MRR per Month (% of MRR) | 8 |
| Revenue Churn per Month (% of MRR) | 2 |
| Months to Project | 12 |
| Result | Value |
|---|---|
| Projected ARR | ₹4,82,92,715 |
| Projected MRR | ₹40,24,393 |
| Current ARR | ₹2,40,00,000 |
| Revenue recognised over the period | ₹3,57,64,275 |
| Implied annual growth rate | 101.2% |
Tips for using the MRR to ARR Projection Calculator
- Hold new MRR as a share of MRR steady only while the market is large; it falls as you scale.
- Use this for board plans, then compare with actuals every month.