Method and assumptions
ARR is a run-rate metric, not recognized annual revenue. It assumes the selected recurring run rate continues for twelve months.
ARR = current MRR × 12. Target MRR = current MRR × (1 + target ARR growth).
Common questions
Is ARR the same as annual revenue?
No. ARR annualizes a recurring run rate; recognized revenue follows accounting rules.
Should one-time revenue be included?
Keep it separate so the recurring run rate remains comparable.
Independent planning calculator. Not financial, tax, legal or investment advice.