Monthly ↔ Annual Revenue Converter
Convert monthly revenue to annual run rate — or break down an annual target into monthly milestones. Includes growth rate projection for businesses with expanding revenue.
Monthly revenue projection
ARR, MRR and Revenue Run Rate
ARR (Annual Recurring Revenue) = MRR (Monthly Recurring Revenue) × 12. This converter extends that simple formula to include growth rates — because most businesses don’t have flat monthly revenue. If your SaaS or services business grows 5% per month, your actual year revenue is significantly higher than 12× your current month’s figure. This converter calculates both the simple ARR and the growth-adjusted projection.
Annual Revenue (with growth g%/month):
= M₁ × ((1+g)^12 – 1) / g
Required M₁ for target (with growth):
M₁ = Annual Target × g / ((1+g)^12 – 1)
💡 What This Means for You
A business doing $5L/month with 5% monthly growth generates $79.6L in year revenue — 33% more than the flat ARR of $60L. Growth rate dramatically affects the revenue number investors see. When presenting to investors, clarify whether you’re citing flat ARR or growth-adjusted projections.
Project your business profitability
Use our Cash Flow Calculator to model income vs. expenses month by month.
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