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Online Business

ARR

Annual Recurring Revenue — the total yearly value of all subscriptions in a SaaS business (usually MRR × 12).

ARR gives a bigger-picture view than MRR and is what most investors ask for. It helps forecast cash flow and company valuation.

It's like looking at your yearly rent income instead of just the monthly amount.

Real world: If your MRR is $50,000, your ARR is $600,000. Investors and buyers use ARR to value SaaS companies.

💡 Growing ARR is how SaaS companies prove they are building something valuable and scalable.