Enter the average monthly recurring revenue ($) and the number of customers into the calculator to determine the Annual Recurring Revenue.

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## Annual Recurring Revenue Formula

The following formula is used to calculate the Annual Recurring Revenue.

**ARR = MRR * #C *12**

- Where ARR is the Annual Recurring Revenue ($/year)
- MRR is the average monthly recurring revenue ($)
- EC is the number of customers

## How to Calculate Annual Recurring Revenue?

The following example problems outline how to calculate Annual Recurring Revenue.

**Example Problem #1:**

- First, determine the average monthly recurring revenue ($). In this example, the average monthly recurring revenue ($) is given as 174.
- Next, determine the number of customers. For this problem, the number of customers is given as 90.
- Finally, calculate the Annual Recurring Revenue using the equation above:

ARR = MRR * #C *12

The values given above are inserted into the equation below:

ARR = 174 * 90 *12 = 187,920 ($/year)

**Example Problem #2: **

The variables needed for this problem are provided below:

average monthly recurring revenue ($) = 180

number of customers = 30

Entering these values and solving gives:

ARR = 180* 30 *12 = 64,800 ($/year)