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Business Forecasting

Revenue Calculator (MRR, ARR & Growth)

Calculate your monthly revenue from units sold or MRR, convert it to Annual Run Rate, and project growth 6 and 12 months into the future.

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Revenue Calculator
Calculate revenue, MRR to ARR, and growth projections
Enter details to calculate revenue

Disclaimer. This calculator is provided for educational and informational purposes only. Results are estimations and do not constitute professional financial, legal, or accounting advice. Consult a qualified advisor, accountant, or company secretary before making business decisions. Read full disclaimer →

About Revenue Forecast Calculator

Revenue forecasting estimates future income based on historical data, growth assumptions, and market factors. Common methods: Bottom-up forecasting (builds from individual products, customers, or regions); Top-down forecasting (starts from total addressable market and applies market share assumptions); Run-rate (annualises recent period performance); Year-over-year growth (applies historical growth rate to prior period).

Forecast accuracy improves with shorter time horizons, more data history, and stable business models. For startups, use scenario planning: Base case (most likely), Bull case (if key assumptions outperform), Bear case (if assumptions underperform). Distinguish between leading indicators (pipeline value, website traffic - predictive) and lagging indicators (revenue, profit - confirmatory). Sales pipeline coverage ratio should be 3-4x quarterly target to reliably hit revenue goals. Review and update forecasts monthly.

Frequently Asked Questions

Bottom-up forecasting builds a revenue estimate from individual products, customers, or regions and sums them up — it's more accurate but requires granular data. Top-down forecasting starts from the total addressable market and applies an assumed market share — faster to produce but less precise. Most mature businesses use bottom-up forecasts validated against a top-down sanity check.
Run-rate annualises a recent period's performance — for example, taking last month's revenue and multiplying by 12 to estimate annual revenue (this is exactly what the Annual Run Rate figure in this calculator shows). It's useful for fast-growing or newer businesses where full-year historical data doesn't exist yet, but it can overstate results if the recent period was unusually strong or seasonal.
Sales pipeline value should typically be 3–4x the quarterly revenue target to reliably hit that goal, since not every pipeline opportunity converts. If your pipeline coverage is below this range, your revenue projections for the coming quarter are at higher risk of falling short even if your growth rate assumptions look reasonable on paper.
Leading indicators — like pipeline value and website traffic — are predictive; they tell you what's likely to happen before it does. Lagging indicators — like revenue and profit — are confirmatory; they tell you what already happened. Good forecasting uses both: leading indicators to catch problems early, and lagging indicators (like the monthly revenue this calculator projects) to validate the plan is working. Review and update forecasts monthly for best accuracy.
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