Finance
Annual Recurring Revenue(ARR)
MRR multiplied by 12 — the normalized annual value of recurring revenue.
Annual Recurring Revenue is MRR × 12, used to express recurring revenue at annual scale. ARR is the dominant metric for SaaS valuations, M&A discussions, and investor reporting. Multi-million ARR figures are easier to communicate than monthly equivalents.
Formula
ARR = MRR × 12 Example
A SaaS company has $250,000 MRR. ARR = $3,000,000.
Related terms
Need help applying Annual Recurring Revenue to your business?
Book a free 30-minute strategy call. I'll show you how Annual Recurring Revenue fits into a real growth strategy for your business.
Book a free strategy call