Finance & Moneyadvanced
ARR
Annual Recurring Revenue
Definition
The annualised version of MRR. Your total recurring revenue projected over 12 months. ARR = MRR × 12.
Why it matters
ARR is the headline metric investors and acquirers use to value SaaS and subscription businesses. £1M ARR is a major milestone for any software or membership business.
Example
Your membership generates £6,000 MRR. ARR = £72,000. Growing to £8,000 MRR would take you to £96,000 ARR, closer to the £100k ARR milestone.
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