Global Araç
Mrr To Arr Converter
MRR
$50,000
Monthly recurring revenue
ARR
$600,000
MRR × 12
Quarterly
$150,000
MRR × 3
Per-customer economics
- Customers
- 500
- Avg revenue per customer (monthly)
- $100.00
- Avg revenue per customer (annual)
- $1,200
Why both metrics matter: SaaS investors and boards think in ARR. Operators and cash flow think in MRR.
MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) are the two dominant unit-economic metrics in SaaS, and they describe the same revenue stream from different time-horizon viewpoints. ARR = MRR × 12 by direct definition, but the conversation each metric drives is different. Operators (CEOs, founders, finance teams) tend to think in MRR because monthly cash flow, monthly burn, and monthly growth-rate tracking match the operational rhythm. Boards, investors, and acquirers think in ARR because the deal-size headline (“Series B at $20M ARR”) is cleaner and matches annual planning cycles.
The converter handles the four-way conversion fluently: any of MRR, ARR, quarterly recurring revenue (QRR = MRR × 3), or customer count × ARPA (Average Revenue Per Account) → all four equivalent forms. The mathematical relationships: MRR × 12 = ARR; MRR × 3 = QRR; ARR / 12 = MRR; ARR / 4 = QRR; customers × monthly ARPA = MRR; customers × annual ARPA = ARR. Useful for board-deck preparation (translating your internal MRR view into the ARR number investors expect), pitch-deck math (sanity-checking the “$10M ARR by year 3” claim against required customer counts and ARPA assumptions), and quarterly reporting (translating between QRR for quarterly statements and the ARR/MRR internal metrics).
Caveat: MRR/ARR specifically measures RECURRING subscription revenue. One-time implementation fees, professional services, consulting hours, and non-recurring expansion revenue do NOT count toward MRR/ARR. This matters for valuation: a SaaS company at $5M ARR + $5M services revenue is NOT a $10M ARR company; investors will value the ARR portion at SaaS multiples (8-15× depending on growth) and the services portion at consulting multiples (1-2×). Cleaner the ARR composition, higher the valuation.
Nasıl Kullanılır
- Pick your input mode: MRR, ARR, QRR, or customers × ARPA.
- Enter the value.
- Read all four equivalent forms instantly.
- Use the customer × ARPA mode to back-calculate: “to hit $10M ARR with $200/mo ARPA, I need 4,167 customers.”
- Save outputs for board-deck math or pitch-deck sanity checks.
Ne Zaman Kullanılır
- Translating operational MRR view into investor-facing ARR for board decks.
- Reverse-engineering customer-count requirements from ARR targets.
- Comparing yourself to peer companies that report in different units (MRR vs ARR).
- Quarterly board reviews where you need to flip between QRR (financial statements) and ARR (KPI dashboard).
- Pitch-deck preparation — investors expect ARR; internal teams report MRR.
Ne Zaman Kullanılmaz
- Mixed-revenue companies — pure ARR/MRR conversion ignores services, one-time fees, transaction-based revenue. Use a more nuanced model.
- Usage-based or consumption pricing models — MRR is a stretch when revenue varies monthly with usage; report committed-revenue separately.
- Predicting revenue (forecasting) — MRR/ARR are point-in-time measurements, not projections. Build a separate forecast model.
- Companies with annual-prepay-only billing — annual prepays count as ARR but the monthly cash impact is lumpy; track booked vs recognized separately.
Yaygın Kullanım Senaryoları
- Verifying a number or output before passing it on
- Quick conversion during a typical workday
- Pre-decision sanity-check on inputs and outputs
- Educational use — demonstrating the underlying concept
Sık Sorulan Sorular
Why does the SaaS world have two metrics for the same number?
Different audiences. Operators care about month-to-month patterns: where churn hits, when expansion lands, what the burn-vs-revenue ratio looks like. Boards care about annualized scale and growth rate. ARR is also more comparable across companies (some bill annually, some monthly) — annualizing normalizes the comparison.
What about quarterly?
QRR (Quarterly Recurring Revenue) is reported by some public SaaS companies because their financials are quarterly. QRR = MRR × 3 = ARR / 4. For private companies, MRR and ARR dominate; QRR appears mostly in earnings releases.
Do annual prepays count as ARR or MRR?
Both. The customer’s annual contract value (ACV) goes directly into ARR (it's the run-rate). For MRR purposes, divide the annual prepay by 12. So a $24,000 annual contract is $2,000 MRR / $24,000 ARR. This matters for cohort analysis and unit economics — your cash-collected ratio is different from your recognized-MRR.
What's NOT included in ARR?
Anything non-recurring: implementation fees, professional services, consulting, training, one-time setup, transaction fees. Variable usage-based overages are also typically excluded from committed ARR (sometimes reported separately as “consumption revenue”). The cleaner the ARR composition (high % of subscription, low % of services), the higher the valuation multiple investors will apply.
How is ARR different from revenue?
ARR is run-rate (current state annualized), revenue is realized (actually collected). A company at $1M MRR enters January with $12M ARR. If they don’t grow or churn, they’ll book $12M revenue that year. If they grow 50% across the year, they’ll exit December at $18M ARR but book somewhere between $13-15M actual revenue (depending on how growth distributed across quarters). Investors care about ARR (forward-looking trajectory); accountants care about revenue (GAAP recognized).
What's a good MRR growth rate?
Stage-dependent. Early stage (under $1M ARR): 15-20% MoM is exceptional, 10% solid. $1-10M ARR: 5-10% MoM is great. Series B+ ($10M+): 3-5% MoM excellent. Compounded over a year, 5% MoM is 80% YoY — impressive at scale. The “rule of 40” heuristic: MRR growth rate (annualized) + EBITDA margin should sum to 40+ for a healthy SaaS business.