What is Annual Run Rate?
Annual Run Rate or ARR is your current revenue projected out over 12 months. It assumes that nothing will change over the next year–no new customers, churn, nothing. Unlikely, but the metric itself is still super helpful.
When you hear about a $1 million business, they're usually referring to ARR.
How is Annual Run Rate calculated?
This is an easy one actually, because Monthly Recurring Revenue has already done most of the work.
Monthly Recurring Revenue x 12 = ARR
What causes my ARR to change?
Because ARR is just MRR's big brother, any changes to MRR affect ARR.
How can I learn more about my ARR?
Because ARR is just MRR's big brother, most everything you can do with MRR you can do with ARR too.
See how each plan contributes to your ARR. Check out how a new plan is performing over time.
Find out how your last 30 days of ARR compares to the same period 6 months ago.
Successful businesses are constantly setting goals and making concrete strides toward them. Let us help!
Mark important landmarks in your business. Things like new feature releases and marketing and retention campaigns. See how your ARR (and other metrics) change after those big days!
Take out the bumps in your data and get a clearer idea of how your business is doing. This is especially helpful for looking at your ARR with a longer date range.