Annual Recurring Revenue (ARR) Calculator
Calculate the recurring-revenue figures to compare across years.
Measure a year-over-year change between comparable amounts. Percentage growth requires a positive prior base; a multi-year compound annual rate is a different calculation.
Compare a current amount with its previous-year counterpart using both absolute change and percentage growth. The tool preserves signed amounts but only gives a conventional growth percentage when the prior value is positive.
Use the same duration, seasonal position and business perimeter. A year-to-date amount should be compared with the corresponding earlier year-to-date period, not a complete prior year.
Subtract the prior amount from the current amount. This remains useful even when the starting value is zero or negative and a conventional percentage is unavailable.
Divide the absolute change by the positive prior value and multiply by 100. Otherwise the tool leaves percentage growth undefined rather than presenting a misleading ratio.
Sample inputs demonstrate the method. They are not a forecast or product offer.
The first example increases from €100,000 to €120,000. The absolute change is €20,000. Dividing that change by the €100,000 prior-year base gives growth of 20%.
Sample inputs demonstrate the method. They are not a forecast or product offer.
Absolute movement and percentage growth answer different questions. The first gives the size of the change in the original units; the second relates it to the earlier positive scale.
The result is not automatically adjusted for inflation, acquisitions, exchange rates or accounting changes. It also does not annualise a multi-year change into CAGR.
The absolute improvement or deterioration is shown. A conventional percentage with a negative denominator can mislead, so this tool does not label it as growth.
Read our calculation and testing approach.