SaaS Metrics

ARR (Annual Recurring Revenue)

The total value of recurring subscription revenue normalized to a one-year period.

What does ARR mean?

ARR is the go-to metric for SaaS and subscription businesses. It takes all active recurring revenue and annualizes it, giving investors and operators a clear picture of predictable income. ARR excludes one-time fees, professional services, and variable usage charges. It is calculated by multiplying monthly recurring revenue (MRR) by 12, or by summing up all active annual subscription values. CrossVal automatically calculates ARR from your connected billing data.