ARR Growth Calculator
Compare annual recurring revenue across any period and translate growth into comparable annual and monthly rates.
ARR inputs
Growth results
How ARR growth is calculated
Total growth compares ending ARR with beginning ARR. CAGR is (ending ÷ beginning)^(1 ÷ years) − 1. The monthly equivalent compounds to the same annualized rate.
Use contracted recurring revenue consistently and exclude implementation fees or other one-time revenue.
Worked example
If ARR rises from $500,000 to $750,000 over one year, total ARR growth is $250,000 and the annual growth rate is 50%. Beginning MRR is $41,666.67 and ending MRR is $62,500. With a 60% target, one-year target ARR is $800,000, leaving a $50,000 gap.
CAGR versus simple growth
For a one-year period, CAGR and the simple growth rate are the same. For multi-year periods, CAGR converts the entire change into a compounded annual rate, making companies or periods of different lengths easier to compare. It does not show whether growth was smooth within the period.
Data consistency checklist
Use the same ARR definition at both dates. Include only recurring contracted revenue, use one currency and one exchange-rate policy, and treat acquisitions, divestitures, pauses and large contract changes consistently. If the period is shorter than a year, annualized results can amplify temporary changes.
Limitations
The result is a mathematical estimate, not a forecast or valuation. It does not account for churn timing, seasonality, bookings that have not started, usage revenue, discounts or collection risk. Review cohort retention and MRR movement alongside ARR growth before making operating or investment decisions.