Keywords · Finance · Monetization

Annual Recurring Revenue (ARR)

The annualized value of recurring revenue, typically calculated as monthly recurring revenue multiplied by twelve.

Why it matters

ARR is the standard headline number investors and boards use to compare SaaS company scale and growth rate year over year.

Example

A company with $50,000 in MRR reports $600,000 in ARR to its board.

Annual Recurring Revenue (ARR) — Growth keyword · Cofounderbase