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ARR Growth Rate Calculator

Calculate and project annual recurring revenue growth rate with new ARR, expansion, contraction, and churn components charted over time.

Tested tool guide Tested browser tools Checked August 15, 2026

What ARR Growth Rate Calculator does, with a checked example

Enter a starting ARR balance plus new ARR, expansion ARR, contraction ARR, and churned ARR for each period, and the calculator rolls them into an ARR bridge: it adds new business and expansion, subtracts contraction and churn, and reports the resulting ending ARR and period-over-period growth rate, then charts each component's contribution across the periods you enter. The surprise for most users: a healthy-looking headline growth rate can still hide rising churn, because new ARR alone drives net growth even as retained-customer revenue erodes underneath it.

Worked example

A concrete input and expected output from the current implementation.

Input

Beginning ARR: $1,000,000; New ARR: $150,000; Expansion ARR: $80,000; Contraction ARR: $20,000; Churned ARR: $60,000

Expected output

Ending ARR: $1,150,000; Net New ARR: $150,000; ARR Growth Rate: 15.0%

Ending ARR = 1,000,000 + 150,000 + 80,000 - 20,000 - 60,000 = 1,150,000, a $150,000 increase on the $1,000,000 base, which is 15% growth for the period.

How the result is produced

1

ARR bridge arithmetic

Ending ARR is computed as beginning ARR plus new ARR plus expansion ARR minus contraction ARR minus churned ARR. The growth rate is the percentage change from beginning to ending ARR for that period. Net new ARR (new plus expansion minus contraction minus churn) is broken out separately so you can see how much of any growth came from new logos versus the existing base.

2

Multi-period projection chart

Enter a sequence of periods and the tool carries each period's ending ARR forward as the next period's beginning ARR, stacking new, expansion, contraction, and churn as separate series on a chart. This makes it possible to see whether growth is decelerating, whether contraction is creeping up, or whether a churn spike coincides with a specific period rather than reading one blended growth number.

Good uses

  • Building the ARR bridge slide for a board deck or investor update, showing how much of this quarter's growth came from new customers versus expansion.
  • Checking whether a rising blended growth rate is masking creeping churn or contraction inside the existing customer base.
  • Modeling next year's ARR trajectory by projecting several periods forward under different new-business and churn assumptions.

Limits and checks

  • The tool doesn't reconcile your inputs against a CRM or billing system - if your beginning ARR figure is already wrong, the bridge arithmetic will still run cleanly and produce a wrong answer with full precision.
  • Contraction ARR and churned ARR should both be entered as positive dollar amounts (the size of the downgrade or the size of the cancelled revenue) - the calculator's formula already subtracts them from the bridge, so entering either one as a negative number would cancel that subtraction and inflate ending ARR instead of reducing it.
  • Projecting several periods forward assumes the components you enter repeat or trend as specified - there's no seasonality model, renewal-timing logic, or allowance for one-time enterprise deals, so a projection is only as good as the assumption behind it.

Common questions

What's the difference between contraction and churn in this calculator?

Churned ARR is revenue lost because a customer cancelled entirely; contraction ARR is revenue lost because an existing customer downgraded but is still active. The calculator keeps them as separate line items so you can tell whether you're losing customers outright or just losing wallet share within accounts you keep.

Does this calculate net revenue retention (NRR)?

Not directly. NRR is (beginning ARR + expansion - contraction - churn) / beginning ARR, excluding new ARR, while this calculator's headline growth rate includes new ARR. You can derive NRR from the same component figures the tool displays by leaving new ARR out of the numerator yourself.

References and verification

The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.

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