Calculate your Annual Recurring Revenue (ARR) below by providing your average ARR per customer and your total number of customers.
ARR is the total annual revenue expected from recurring subscriptions in your SaaS business. It gives you a snapshot of your companies expected revenue over the next year.
ARR is calculated by multiplying the monthly recurring revenue (MRR) by 12. This accounts for the total revenue expected from subscription-based customers over a year.
ARR is a crucial metric for assessing your SaaS business's long-term financial health and growth potential. It helps you forecast revenue, evaluate performance, and attract investors.
SaaS businesses can boost ARR by acquiring more customers, upselling premium features or plans to existing customers, and reducing churn by making your existing customers happy.
ARR is a significant factor in determining the valuation of a SaaS business. Investors often use ARR as an indicator of your company's growth potential and financial stability.
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