Annual Recurring Revenue (ARR)
Expected yearly revenue based on your current subscriptions. It’s the annualized version of the MRR.
What is Annual Recurring Revenue (ARR)?
Overall, this KPI is an estimation of the revenue you’ll have this year based on your current situation. Therefore, it takes into account the yearly subscription you have by now and your pricing strategy, among others. In order to get an accurate number, the calculation also considers churn; this is, the amount you lose due to cancellations. If you already measure your MRR (Monthly Recurring Revenue), you can also multiply it by 12 to get the estimation.
This metric will give you some interesting learnings about your growth and where the company is heading with the current strategy you are following. Therefore, you can also have some hints of those areas that could be adapted or changed in order to be in a more profitable situation. It’s all about understanding data and having some clear goals that you want to reach with them.
Pre-built widgets to display Annual Recurring Revenue (ARR)
year to date
Annual Recurring Revenue (ARR)
month
MRR / ARR
How to calculate Annual Recurring Revenue (ARR)?
(
Sum(New Monthly MRR,MRR) *
12
)
Supported integrations
How it works
1. Connect your data sources
One-click real-time integration with our dashboards to the most popular CRM, support and other business systems.
2. Build dashboards
Use our prebuilt KPI dashboards or customize your own by using formulas to calculate more advanced metrics.
3. Boost team performance
Share real-time insights with your team and boost performance by 20% with visualizing data on dashboards.
Boost performance with real-time insights
Plecto is a data visualization software that helps you motivate your employees to reach new limits and stay on top of your business.
