Monthly ↔ Annual Revenue Converter — MRR and ARR
Convert monthly revenue into an annual figure or an annual target into monthly milestones, with growth built in. For subscription businesses it also does the SaaS reading: ARR as a run rate, where it lands in twelve months, and the net new ARR in between.
Monthly revenue projection
ARR, MRR and revenue run rate
There are two honest answers to “what is our annual revenue?”, and this converter gives both. The run rate takes the current month and multiplies by twelve — it is what investors are usually quoted, and it ignores growth entirely. The growth-adjusted projection adds up twelve months that each grow on the last, which is what you will actually bank. At 5% monthly growth the two differ by a third. 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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