Subscription Ecommerce ARR Calculator

Enter your MRR, expected growth rate, and churn. Get your current ARR plus a multi-year projection so you can see where your revenue is headed.

Inputs

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Results

Updates as you type

Current ARR

$102,000.00

YearStart MRREnd MRRProjected ARR
Apr 2026$8,500.00$10,200.00$122,400.00
Apr 2027$10,200.00$12,240.00$146,880.00
Apr 2028$12,240.00$14,688.00$176,256.00

How to calculate ARR

Start with your MRR

Enter what your business brings in every month from subscriptions or recurring customers. That is your baseline.

Add growth and churn

Set your expected annual growth rate and the percentage you lose to cancellations. The calculator nets them against each other.

See where you will be

Get your current ARR instantly, plus a year-by-year projection table showing how MRR and ARR change over time.

How to grow your ARR faster

ARR goes up two ways: bring in more revenue, or stop losing what you already have.

Fix churn before chasing growth

Adding customers while losing them at the same rate is like filling a leaky bucket. Get churn under control first and every new sale sticks.

Expand revenue from existing customers

Upsells and add-ons are cheaper than new customer acquisition. If your average customer spends 10% more per year, that flows straight into ARR.

Move to annual billing

Customers on annual plans churn less than monthly subscribers. You also get the cash upfront, which helps with planning and cash flow.

Use reviews to reduce churn

Customers who leave positive reviews are more invested in your product. Collecting reviews early creates a commitment that makes cancellation less likely.

Track net revenue retention

If your existing customers are spending more over time (even without new signups), your ARR grows on autopilot. Above 100% net retention is the goal.

Run the projections quarterly

Your growth rate and churn rate change. Re-run this calculator every quarter with fresh numbers so your forecast stays honest.

Reviews that keep
customers around

Happy customers stick around longer. WiserReview helps you collect and show authentic reviews that build the kind of trust that lowers churn.

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FAQs

Common questions about ARR and how this calculator works.

ARR is the yearly revenue you can count on from subscriptions or recurring customers. If 500 customers each pay you $50 per month, your MRR is $25,000 and your ARR is $300,000. It is the single most important number for any subscription business because it tells you how big your predictable revenue base is.
The simplest version is MRR times 12. So if you bring in $10,000 per month from recurring customers, your ARR is $120,000. This calculator also factors in growth and churn, so you get a more realistic picture of where that number is heading over the next few years.
MRR is what you collect this month. ARR is that number annualized. MRR is better for tracking short-term changes like a new pricing plan or a bad churn month. ARR is better for long-term planning, investor conversations, and setting annual targets.
Because it compounds. If you lose 5% of revenue each year to cancellations, that does not sound bad. But over 3 years, you have lost nearly 15% of what you started with. Meanwhile every new customer you add has to replace that lost revenue before your ARR actually grows. That is why cutting churn by even 1-2% has a bigger impact than most people expect.
It depends on your stage. Early-stage companies growing off a small base often hit 50-100% per year. More established businesses with $1M+ ARR typically aim for 20-40%. The key is net growth after churn. Growing 40% but churning 15% means your real growth is 25%.
Expansion revenue is extra money from existing customers -- upgrades, add-ons, usage increases. It matters because it costs almost nothing compared to acquiring a new customer. Some of the best subscription businesses get more expansion revenue than new customer revenue, which means their ARR grows even if they stop marketing.
Yes. If more revenue leaves through churn and downgrades than comes in from new sales and expansions, your ARR shrinks. It is more common than people think, especially when a business scales up sales without fixing retention first.
Monthly is ideal for the underlying MRR. For the full ARR picture with projections, quarterly works well. The point is to catch trends early. If your net growth rate drops two quarters in a row, that is a signal to dig into churn and expansion numbers before it becomes a bigger problem.