Convert subscription contracts into annual recurring revenue, normalising monthly and multi-year terms.
ARR annualises every recurring contract regardless of billing term, which is what makes it comparable across companies. One-off fees and professional services are excluded because they do not recur. The share of revenue on annual terms matters as much as the total: annual prepayment funds growth without dilution and materially reduces churn risk.
Annual Recurring Revenue
ARR = monthly customers × monthly price × 12 + annual customers × annual price
ARR = monthly customers × monthly price × 12 + annual customers × annual price ARR annualises every recurring contract regardless of billing term, which is what makes it comparable across companies. One-off fees and professional services are excluded because they do not recur.
The share of revenue on annual terms matters as much as the total: annual prepayment funds growth without dilution and materially reduces churn risk.
This calculator takes 4 inputs: Customers on monthly plans, Average monthly plan price, Customers on annual plans, Average annual plan price. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.