ARR Calculator 2026 Annual Recurring Revenue for SaaS

Calculate your annual recurring revenue with the four-component ARR waterfall (new + expansion - churn - contraction), growth rate analysis, and milestone projections.

Current ARR
$2.90M
Net New ARR
$340.0K
ARR Growth Rate (YoY)
11.7%

ARR Waterfall

New ARR
+$300.0K
Expansion ARR
+$150.0K
Churned ARR
-$80.0K
Contraction ARR
-$30.0K
Net New ARR$340.0K

Time to Milestones (at current growth rate)

$1.00M ARR
Reached
$5.00M ARR
59 mo
$10.00M ARR
134 mo
$50.00M ARR
N/A
$100.00M ARR
N/A

ARR Waterfall: Why Components Matter More Than the Headline

A company growing ARR by 100% sounds impressive. But the source of that growth tells a completely different story depending on composition. A company adding $5M in new ARR while losing $2M to churn is in a fundamentally different position than one adding $3M with zero churn. The waterfall breakdown reveals the health of your growth engine.

New ARR from new logos shows your acquisition engine is working. Expansion ARR from existing customers proves your product delivers increasing value. Churned ARR signals where the product or experience fails. Contraction ARR from downgrades often indicates pricing or packaging problems. Track all four components independently.

What to Include and Exclude from ARR

Include

  • Monthly subscription revenue (x12)
  • Annual subscription contracts
  • Committed minimum usage fees
  • Platform fees and seat-based pricing
  • Multi-year deals (at annual value only)

Exclude

  • One-time implementation or setup fees
  • Professional services revenue
  • Non-committed usage overages
  • Hardware or equipment sales
  • Training or certification fees

Common mistake: counting multi-year deals at full value upfront. A 3-year, $300K deal should be counted as $100K ARR, not $300K.

ARR Growth Rate Benchmarks by Stage

StageARR RangeExpected YoY GrowthT2D3 Equivalent
Pre-Seed / Seed< $1M200-300%+Tripling (3x)
Series A$1-5M150-250%Tripling (3x)
Series B$5-15M100-180%Doubling (2x)
Series C$15-50M70-120%Doubling (2x)
Growth / Pre-IPO$50M+30-70%Doubling (2x)

Related Calculators

MRR CalculatorNRR CalculatorRule of 402026 Benchmarks
Know your ARR? Calculate your SaaS valuation ↗

Frequently Asked Questions

How do you calculate ARR from MRR?
The simplest method is MRR x 12. However, if you have a mix of monthly and annual contracts, the accurate approach is: (Monthly MRR x 12) + Annual Contract Value. Do not include one-time implementation fees, services revenue, or usage overages that are not committed. Multi-year deals should be counted at their annual value, not the total contract value.
What is a good ARR growth rate for SaaS?
It depends heavily on your stage. Seed-stage companies (under $1M ARR) typically target 200-300% YoY growth. Series A ($1-5M ARR) targets 150-250%. Series B ($5-15M) targets 100-180%. Series C ($15-50M) targets 70-120%. The T2D3 framework (triple, triple, double, double, double) maps the $1M to $100M trajectory over five years. Growth rate benchmarks tighten at every stage as the base gets larger.
What should I include in ARR calculations?
Include all committed, recurring subscription revenue. This means monthly subscription fees (annualised), annual subscription contracts, and committed minimum usage fees. Exclude one-time setup or implementation fees, professional services revenue, non-committed usage overages, hardware revenue, and training fees. The key test: would this revenue recur next year without any additional sales effort?
What is the T2D3 growth framework?
T2D3 stands for Triple, Triple, Double, Double, Double. It describes the ideal growth trajectory from $1M to $100M ARR: triple to $3M, triple to $9M, double to $18M, double to $36M, double to $72M. In practice, few companies hit this exact pattern, but it provides a useful benchmark for what elite growth looks like. Companies that achieve T2D3 typically reach $100M ARR in about 5-6 years from $1M.
How is net new ARR different from total ARR?
Total ARR is your complete annual recurring revenue at a point in time. Net new ARR is the change over a period: new ARR from new customers plus expansion ARR from existing customers, minus churned ARR from lost customers and contraction ARR from downgrades. Net new ARR is the growth engine metric. You can have high total ARR but declining net new ARR, which signals a growth problem.