Calculators
ARR Growth Calculator
Project annual recurring revenue at a growth rate and find the growth needed to hit an ARR target on time.
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- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Setting an ARR target for a fundraising plan
- Testing whether a growth goal is realistic
- Translating annual targets into monthly ones
- Projecting revenue for a financial model
About this tool
What the ARR Growth Calculator does
ARR compounds like any growth rate. This calculator projects ARR year by year, tells you how long it will take to reach a target at your current pace, and solves for the annual and monthly growth rates needed to get there by a chosen date.
Formula
- Projected ARR = current ARR × (1 + growth rate)^years
- Required growth = (target ÷ current)^(1 ÷ years) − 1
- Monthly growth needed = (target ÷ current)^(1 ÷ months) − 1
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Current ARR | $1,200,000 |
| Annual growth rate | 60% |
| Years to project | 3 years |
| Target ARR | $5,000,000 |
| Result | Value |
|---|---|
| Projected ARR | $4,915,200 |
| Annual growth needed for target | 60.9% |
| Monthly growth needed | 4.04% |
| Years to target at current rate | 3 years |
How to read the result
Growth rates usually decline as ARR grows, so a single constant rate overstates later years. Treat the projection as an upper bound and model a slowing rate for planning.
The monthly growth needed is a useful operating target, because it can be checked every month rather than once a year.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
It depends on stage. Early-stage companies often aim to double or triple ARR each year, while larger companies grow more slowly.
Take the twelfth root of (1 + annual rate) and subtract 1. A 100% annual rate is about 5.9% a month.
No. ARR counts only recurring subscription revenue.
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