ARR (annual recurring revenue)
MRR multiplied by twelve — the annualised run rate of recurring revenue.
Last reviewed 12 September 2026
ARR is a snapshot of contracted momentum, not money in the bank. It assumes today's subscriptions continue for a year.
Only recurring contracts count. Projects and one-off deliveries are revenue, not ARR.
Formula
ARR = MRR × 12
Frequently asked
What is arr (annual recurring revenue)?+
MRR multiplied by twelve — the annualised run rate of recurring revenue. ARR is a snapshot of contracted momentum, not money in the bank. It assumes today's subscriptions continue for a year. Only recurring contracts count. Projects and one-off deliveries are revenue, not ARR.
How do you calculate arr (annual recurring revenue)?+
ARR = MRR × 12
Why does arr (annual recurring revenue) matter for founders?+
Only recurring contracts count. Projects and one-off deliveries are revenue, not ARR.
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