Annual Recurring Revenue (ARR) is the total predictable revenue your SaaS business expects to earn from subscriptions over a year. It’s calculated by multiplying your Monthly Recurring Revenue (MRR) by 12, or by dividing the total contract value by the number of years for multi-year deals. ARR excludes one-time fees and focuses only on recurring income, making it a key metric for tracking growth and forecasting future revenue.
What is Recurring Revenue (ARR)?
