Annual Recurring Revenue (ARR)

Metrics > Annual Recurring Revenue

Annual Recurring Revenue (ARR)

Definition: Measures projected revenue from subscriptions per year.

Formula:
ARR = MRR × 12

Why It Matters:
ARR predicts long-term financial health.

How to Improve:
  • Offer annual plans to lock in revenue
  • Optimize pricing strategy
  • Offer annual plans to lock in revenue
Relevant Integrations:

Example Calculation:

If MRR is $10,000, then:

ARR = 10,000× 12 = 120,000