Annual Recurring Revenue (ARR) Calculator
Annual recurring revenue (ARR) is the yearly revenue a company expects from ongoing subscriptions. It's a crucial metric for predicting growth, planning strategies, and assessing the health of a subscription-based business.
You can use our calculator below to estimate your ARR.
Annual Recurring Revenue (ARR) Calculator
Enter any two values to calculate the third. For example, to calculate Annual Recurring Revenue (ARR), enter Total Number of Annual Paying Customers, Average Annual Revenue per Customer, and then hit the calculate button.
How to Calculate Annual Recurring Revenue (ARR)
To calculate ARR, multiply your total number of paying customers by the average annual revenue per customer.
10 Quick Tips to Improve ARR
Here are 10 quick tips to improve your ARR:
- Upsell existing customers
- Reduce churn with better customer support
- Offer longer contract terms
- Implement a referral program
- Focus on high-value customers
- Optimize pricing strategies
- Improve product features regularly
- Use data analytics to identify growth opportunities
- Create loyalty programs
- Expand into new markets or segments
