Skip to content
ENExplore Calculators

ARR Growth Calculator

Compare annual recurring revenue between periods to get the growth rate investors benchmark against.

About ARR Growth Calculator

Period-on-period growth expresses the change in annual recurring revenue as a percentage of where it started, so a rise from 10 to 12 and from 100 to 120 both read as 20%. Growth rate is the headline number in every board pack and investor update, and it is the basis of the forecasts built on top of it.

Formula

ARR Growth

Growth % = (ARR at end of year − ARR at start of year) ÷ ARR at start of year × 100

ARR at start of year
Value at the start of the period
ARR at end of year
Value at the end of the period

Worked example

With the default values below, ARR Growth Calculator returns Growth Rate of 50.00%. Change any input above and every figure here is recalculated in your browser.

Inputs used

ARR at start of yearminimum 0
600,000
ARR at end of yearminimum 0
900,000

Results

Growth Rate
50.00%
Absolute Change
300,000.00
Growth Multiple
1.500
Direction
Growth of 50%

Step by step

  1. 1Values used
  2. 2ARR Growth
  3. 3Growth Rate= 50.00
  4. 4Absolute Change= 300,000.00
  5. 5Growth Multiple= 1.500
  6. 6Direction= Growth of 50%

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is ARR Growth calculated?

Growth % = (ARR at end of year − ARR at start of year) ÷ ARR at start of year × 100 Period-on-period growth expresses the change in annual recurring revenue as a percentage of where it started, so a rise from 10 to 12 and from 100 to 120 both read as 20%.

Why does ARR Growth matter?

Growth rate is the headline number in every board pack and investor update, and it is the basis of the forecasts built on top of it.

What values do I need to enter?

This calculator takes 2 inputs: ARR at start of year, ARR at end of year. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

Related Calculators

ARR Growth Calculator | Calcrivo