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Annual Recurring Revenue (ARR)

Expected yearly revenue based on your current subscriptions. It’s the annualized version of the MRR.

Annual Recurring Revenue (ARR)

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)

Annual Recurring Revenue (ARR)

year to date

Annual Recurring Revenue (ARR)




How to calculate Annual Recurring Revenue (ARR)?
    Sum(New Monthly MRR,MRR) * 
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