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ARR (Annual Recurring Revenue) Growth Calculator

Compute net new ARR, growth percentage, and annualized CAGR over any period.

ARR Growth Calculator

Compute net new ARR, growth %, and annualized CAGR.

Enter ARR values

Formula

Net new ARR = ending ARR − starting ARR.

Growth % = net new ARR ÷ starting ARR × 100.

Monthly CAGR = (ending / starting)^(1 ÷ months) − 1.

Annualized CAGR = (1 + monthly CAGR)^12 − 1.

Steps

  • Enter starting ARR for the measurement period.
  • Enter ending ARR for the same period.
  • Enter the number of months in the period.
  • Review net new ARR, growth %, and annualized CAGR.

Additional calculations

Enter ARR values to see growth metrics.

Related calculators

Burn Multiple (Efficiency) Calculator

Connect growth with capital efficiency.

MRR (Monthly Recurring Revenue) Calculator

Translate customer counts and ARPU into MRR.

ARR Growth Playbook

Track ARR growth with net new ARR, growth %, and CAGR to keep momentum aligned with efficiency.

Table of Contents

ARR Growth Formula

ARR growth = (Ending ARR − Starting ARR) ÷ Starting ARR. CAGR smooths growth across months: (Ending ÷ Starting)^(1 ÷ months) − 1.

Key Drivers

Break ARR into new, expansion, contraction, and churn. Improving retention (lower churn) often has the fastest impact on growth quality.

Benchmarks & Targets

Early stage: triple-triple-double targets. Growth stage: 40%+ YoY with efficiency focus. Late stage: durable 20–30% with strong NDR.

Quality of Growth

Pair ARR growth with CAC payback, burn multiple, and NDR to ensure growth is sustainable and capital efficient.

Measurement Cadence

Track monthly and review 3/6/12-month CAGR to spot acceleration or deceleration early. Keep LCP low by loading calculations quickly.

FAQs

What is ARR growth?

ARR growth measures the change in annual recurring revenue over time, accounting for new, expansion, contraction, and churn.

Why use CAGR?

CAGR smooths growth over multiple months, removing volatility to compare performance periods.

Should I include churn?

Yes. Ending ARR should reflect churn and contraction so growth captures net performance.

How often should I calculate?

Monthly tracking with 3, 6, and 12-month windows shows trendlines and seasonality.

How does ARR growth tie to burn multiple?

Higher ARR growth improves burn multiple by increasing net new ARR for each dollar burned.

Summary

Compute net new ARR, growth %, and annualized CAGR with blank defaults and dark-mode styling.

Sections follow the Vitamin K structure: inputs, results, formula, steps, additional metrics, guide, related calculators, FAQs, and summary.

Use this to align ARR growth with efficiency metrics like burn multiple and CAC payback.

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ARR (Annual Recurring Revenue) Growth Calculator

Compute net new ARR, growth percentage, and annualized CAGR over any period.

How to use ARR (Annual Recurring Revenue) Growth Calculator

Step-by-step guide to using the ARR (Annual Recurring Revenue) Growth Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the ARR (Annual Recurring Revenue) Growth Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The ARR (Annual Recurring Revenue) Growth Calculator is designed to be user-friendly and provide instant calculations.

Is the ARR (Annual Recurring Revenue) Growth Calculator free to use?

Yes, the ARR (Annual Recurring Revenue) Growth Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the ARR (Annual Recurring Revenue) Growth Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from ARR (Annual Recurring Revenue) Growth Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.