What is ARR?
Annual Recurring Revenue (ARR) represents the value of your subscription-based revenue over 12 months. It’s essentially your Monthly Recurring Revenue (MRR) multiplied by 12, giving you a long-term view of your revenue stream.
ARR helps you understand how your business is growing year over year, which is especially useful for forecasting, goal setting, and investor reporting.
How is ARR calculated?
ARR is a direct multiple of MRR:
Formula:
ARR = MRR × 12
Since MRR is normalized (daily, weekly, monthly, yearly subscriptions converted to monthly values), ARR reflects the expected revenue over a full year from all current, active subscriptions with at least one successful payment.
Why ARR matters
ARR helps you:
Forecast long-term revenue performance
Understand your subscription revenue at scale
Plan budgets, hiring, and expansion based on reliable income
Evaluate your company’s valuation if you're raising capital
It’s one of the key metrics used by SaaS founders, CFOs, and investors to benchmark growth.
How GrowthOptix calculates and displays ARR
ARR is calculated automatically once your MRR is determined.
Available in your Home Dashboard and Subscriptions Dashboard.
Based on real-time MRR pulled from Stripe and PayPal.
Pro Tip
ARR doesn’t account for churn, upgrades, or expansion over time. It’s a snapshot based on your current MRR. Use it alongside Forecast to better project dynamic growth.
Want to unlock your ARR potential?
Connect your Stripe or PayPal account to GrowthOptix and get an instant view of your ARR, no spreadsheets needed.