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Calculates total predictable annual revenue from subscriptions. Indicates business health and valuation potential for SaaS companies.

Водич корак по корак

  1. 1Calculate total MRR
  2. 2Multiply MRR by 12 for annualized revenue
  3. 3Account for expected churn and new subscriptions
  4. 4Compare to growth targets

Worked Examples

Инпут
$5000MRR
Резултат
$60000ARR

Common Mistakes to Avoid

  • Counting annual payment as single-year revenue instead of spreading
  • Not adjusting for expected churn in projections

Frequently Asked Questions

Is ARR the same as annual revenue?

No; ARR counts only recurring subscription revenue at current run rate, excluding one-time sales.

How do I grow ARR?

Acquire new customers, reduce churn, and increase ARPU (average revenue per user) through upsells.

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