Annual Recurring Revenue
ARRYour recurring revenue expressed as a yearly run-rate. Usually just MRR × 12.
How it's calculated
ARR = MRR × 12
Why it matters
Investors talk in ARR; it's the headline size of a subscription business.
Related terms
Monthly Recurring Revenue (MRR)
The predictable revenue you collect every month from subscriptions. The heartbeat metric for any subscription business.
Net Revenue Retention (NRR)
How much revenue you keep from existing customers over a year — after upgrades, downgrades, and churn. Above 100% means you grow even with zero new customers.
Gross Revenue Retention (GRR)
Like NRR but without counting upgrades — it can never exceed 100%. Pure measure of how much revenue you lose to churn and downgrades.
Average Revenue Per User (ARPU)
The average revenue each customer (or account) brings in over a period.