Definition
The annualized value of recurring subscription revenue.
Formula
MRR x 12
How to measure
Take the current MRR figure and multiply by twelve to express it as an annualized run rate.
Why track it
ARR is the standard scale benchmark used by investors and boards to compare SaaS company size and growth rate.
Example
A company with $60,000 MRR reports $720,000 ARR.
FAQ
- What is Annual Recurring Revenue?
- The annualized value of recurring subscription revenue.
- How do you calculate Annual Recurring Revenue?
- MRR x 12
- Why track Annual Recurring Revenue?
- ARR is the standard scale benchmark used by investors and boards to compare SaaS company size and growth rate.