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Pricing and billing

MRR to ARR calculator

Turn recurring revenue into its yearly figure, then watch what new, expansion, churn and contraction do to it over the next twelve months.

Free, no accountIn your browser

What you bill every month on subscriptions, licences and rentals - not one-off setup fees.

Recurring revenue from customers who were not there last month.

Seats added, upgrades, extra numbers - growth on accounts you already bill.

Try

Result

$8,000.00 MRR · $96,000.00 ARR · $420.00 net new a month

Twelve months of this ends at $13,040.00 of MRR, or $156,480.00 of ARR.

  • Info

    $8,000.00 a month is $96,000.00 a year

    ARR is this month's recurring revenue times twelve: $8,000.00 × 12 = $96,000.00. Backwards it is the same division: $96,000.00 ÷ 12 = $8,000.00. Neither figure includes a one-off setup or migration fee, because next year does not get those again.

  • Info

    3.1% of this month's revenue cancels

    $250.00 of $8,000.00 is 3.1% gross revenue churn a month. Compounded over twelve months with nothing won to replace it, that is 31.7% of today's revenue gone - which is why a number that looks small monthly is an annual problem.

  • Info

    Net revenue retention is 97.8%

    Expansion of $150.00 does not cover the $330.00 lost to cancellations and downgrades, so your existing customers are worth 2.3% less each month. Below 100% every month of growth has to be bought again from new business.

Now

MRR
$8,000.00
ARR
$96,000.00
Net new MRR a month
$420.00
Monthly gross revenue churn
3.1%
Net revenue retention
97.8%

Twelve months at these amounts

MonthMRRARR
1$8,420.00$101,040.00
2$8,840.00$106,080.00
3$9,260.00$111,120.00
4$9,680.00$116,160.00
5$10,100.00$121,200.00
6$10,520.00$126,240.00
7$10,940.00$131,280.00
8$11,360.00$136,320.00
9$11,780.00$141,360.00
10$12,200.00$146,400.00
11$12,620.00$151,440.00
12$13,040.00$156,480.00

Each month adds the same $420.00 of net new MRR, and the floor is $0.00 - a projection cannot bill less than nothing.

What a reseller's MRR is actually made of

A reseller's recurring revenue is rarely one thing. Mailbox and licence seats are genuinely monthly: a seat added in March bills in March and every month after it. Domain registrations and phone number rentals are not - a domain renews on its anniversary, so the whole year's fee lands in one month and nothing lands in the other eleven.

That matters for the table above. Spreading a renewal book evenly makes the line smoother than the bank account: a reseller with a few hundred domains renewing in two busy months will see those months well above this projection and the quiet months below it. The flatter this projection looks against your own invoices, the more of your MRR is really renewal revenue wearing a monthly label.

  • This is a projection from the constant monthly amounts you typed, not a forecast. It assumes next month wins, expands, churns and contracts by exactly the same dollars as this one, which no real month does.
  • Renewals are lumpy and this spreads them evenly. An annual domain or a yearly licence commitment arrives in one month in full, so the twelve rows are smoother than the invoices behind them.
  • Revenue is not collection. Nothing here knows whether a customer paid the invoice, paid it late, or is about to charge it back, and an unpaid month still counts as MRR in this table.
  • These are revenue figures, not profit: the supplier cost of every seat and renewal is still inside them. The margin and profit tools next door are where that comes out.

What this is

An MRR to ARR calculator that stops at the multiplication by twelve is answering the easy half of the question. This one also takes the four movements either side of that number - new, expansion, churn, contraction - and projects where the next twelve months actually lands, because a reseller’s recurring revenue is seat licences billed monthly sitting next to domain and number renewals that are not monthly at all.

Annual recurring revenue is monthly recurring revenue times twelve, and the reverse division gets back to the monthly figure. Neither number includes a one-off setup or migration fee, because next year’s bill does not charge for that work again.

The movements are what change MRR from one month to the next: new revenue from customers who were not there last month, expansion from seats or upgrades on accounts you already bill, churn from cancellations, and contraction from downgrades. Net new is new plus expansion, less churn and contraction, and it is what the projection adds every month for twelve months.

A reseller’s recurring revenue is lumpier than a SaaS chart suggests - a domain or a number renews once a year rather than monthly - which is part of why Pricing what you resell: cost, markup and margin (/blog/pricing-what-you-resell-cost-markup-and-margin) treats this projection as one sum among several, not the whole picture: it sits there next to break-even, seat planning and lifetime value.

How to read the result

Read the "Now" block as this month’s snapshot: MRR, ARR, net new, gross revenue churn and net revenue retention side by side. The twelve-month table beneath it is the same net new figure added once a month, floored at zero, because a projection cannot bill less than nothing.

A reseller’s own invoices are rarely this smooth: a seat added in March bills every month after, but a domain or a number renews once a year and lands the whole fee in a single month. The flatter this projection looks against the real invoices, the more of the MRR entered is actually renewal revenue wearing a monthly label.

Common mistakes

What goes wrong most often, and how to tell.

  • Entering an annual renewal figure as if it were monthlyDomain and number renewals bill once a year in full, not a twelfth at a time, so dividing a year of renewal revenue by twelve before entering it here understates the month it actually lands in and overstates every other month. Enter what genuinely bills this month, lumps and all.
  • Reading a flat twelve-month projection as a forecast of real invoicesThe table assumes next month wins, expands, churns and contracts by exactly the same dollars as this one, which smooths out the renewal spikes a reseller actually sees. It is a projection of the constant figures typed in, not a prediction of the account.
  • Comparing a revenue figure here against a profit targetMRR and ARR are billing, not margin: the supplier cost behind every seat and renewal is still inside both figures. A revenue number that looks healthy can still be running at a thin margin, which this page has no way of showing.

Questions

What people ask about this tool.

  • Multiply monthly recurring revenue by twelve. The reverse, ARR to MRR, is the same figure divided by twelve. Neither conversion should include a one-off fee, because that revenue does not repeat next year the way a subscription does.

  • Because it adds the same net new amount every month, and a reseller’s real revenue is not that even: domain and number renewals land in full on their anniversary rather than spread across the year the way a monthly seat licence does.

  • It is this month’s MRR plus expansion, less churn and contraction, shown as a percentage of this month’s MRR. Above 100% means expansion from existing customers is outpacing what cancellations and downgrades are taking away, so the book grows even before a single new customer signs.

  • No. Every figure comes from the five fields on this page. Nothing here is read from an account, a licence, a domain or a number rental - the MRR, the movements and the projection are only ever what was typed into the fields.

Use it from the API

The same check, as one request.

Request
curl -X POST https://resellerhq.com/api/tools/mrr-arr-calculator \
  -H "Content-Type: application/json" \
  -d '{"mrr":8000,"newMrr":600,"expansionMrr":150,"churnMrr":250,"contractionMrr":80}'
Response
{
  "tool": "mrr-arr-calculator",
  "input": {
    "mrr": 8000,
    "newMrr": 600,
    "expansionMrr": 150,
    "churnMrr": 250,
    "contractionMrr": 80
  },
  "result": {
    "verdict": {
      "tone": "success",
      "headline": "$8,000.00 MRR · $96,000.00 ARR · $420.00 net new a month",
      "summary": "Twelve months of this ends at $13,040.00 of MRR, or $156,480.00 of ARR."
    },
    "findings": [
      {
        "id": "arr-from-mrr",
        "severity": "info",
        "title": "$8,000.00 a month is $96,000.00 a year",
        "detail": "ARR is this month's recurring revenue times twelve: $8,000.00 × 12 = $96,000.00. Backwards it is the same division: $96,000.00 ÷ 12 = $8,000.00. Neither figure includes a one-off setup or migration fee, because next year does not get those again."
      },
      {
        "id": "churn-rate",
        "severity": "info",
        "title": "3.1% of this month's revenue cancels",
        "detail": "$250.00 of $8,000.00 is 3.1% gross revenue churn a month. Compounded over twelve months with nothing won to replace it, that is 31.7% of today's revenue gone - which is why a number that looks small monthly is an annual problem."
      },
      {
        "id": "net-revenue-retention",
        "severity": "info",
        "title": "Net revenue retention is 97.8%",
        "detail": "Expansion of $150.00 does not cover the $330.00 lost to cancellations and downgrades, so your existing customers are worth 2.3% less each month. Below 100% every month of growth has to be bought again from new business."
      }
    ],
    "parts": [
      {
        "kind": "facts",
        "title": "Now",
        "rows": [
          [
            "MRR",
            "$8,000.00"
          ],
          [
            "ARR",
            "$96,000.00"
          ],
          [
            "Net new MRR a month",
            "$420.00"
          ],
          [
            "Monthly gross revenue churn",
            "3.1%"
          ],
          [
            "Net revenue retention",
            "97.8%"
          ]
        ]
      },
      {
        "kind": "table",
        "title": "Twelve months at these amounts",
        "columns": [
          "Month",
          "MRR",
          "ARR"
        ],
        "rows": [
          [
            "1",
            "$8,420.00",
            "$101,040.00"
          ],
          [
            "2",
            "$8,840.00",
            "$106,080.00"
          ],
          [
            "3",
            "$9,260.00",
            "$111,120.00"
          ],
          [
            "4",
            "$9,680.00",
            "$116,160.00"
          ],
          [
            "5",
            "$10,100.00",
            "$121,200.00"
          ],
          [
            "6",
            "$10,520.00",
            "$126,240.00"
          ],
          [
            "7",
            "$10,940.00",
            "$131,280.00"
          ],
          [
            "8",
            "$11,360.00",
            "$136,320.00"
          ],
          [
            "9",
            "$11,780.00",
            "$141,360.00"
          ],
          [
            "10",
            "$12,200.00",
            "$146,400.00"
          ],
          [
            "11",
            "$12,620.00",
            "$151,440.00"
          ],
          [
            "12",
            "$13,040.00",
            "$156,480.00"
          ]
        ],
        "mono": [
          1,
          2
        ],
        "note": "Each month adds the same $420.00 of net new MRR, and the floor is $0.00 - a projection cannot bill less than nothing."
      },
      {
        "kind": "text",
        "title": "What a reseller's MRR is actually made of",
        "body": "A reseller's recurring revenue is rarely one thing. Mailbox and licence seats are genuinely monthly: a seat added in March bills in March and every month after it. Domain registrations and phone number rentals are not - a domain renews on its anniversary, so the whole year's fee lands in one month and nothing lands in the other eleven.\n\nThat matters for the table above. Spreading a renewal book evenly makes the line smoother than the bank account: a reseller with a few hundred domains renewing in two busy months will see those months well above this projection and the quiet months below it. The flatter this projection looks against your own invoices, the more of your MRR is really renewal revenue wearing a monthly label."
      }
    ],
    "limits": [
      "This is a projection from the constant monthly amounts you typed, not a forecast. It assumes next month wins, expands, churns and contracts by exactly the same dollars as this one, which no real month does.",
      "Renewals are lumpy and this spreads them evenly. An annual domain or a yearly licence commitment arrives in one month in full, so the twelve rows are smoother than the invoices behind them.",
      "Revenue is not collection. Nothing here knows whether a customer paid the invoice, paid it late, or is about to charge it back, and an unpaid month still counts as MRR in this table.",
      "These are revenue figures, not profit: the supplier cost of every seat and renewal is still inside them. The margin and profit tools next door are where that comes out."
    ]
  }
}

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