Definition The predictable revenue a subscription business earns each year.
Also called ARR, Annual recurring revenue
Example MRR of €30k × 12 gives ARR of €360k.
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Why it matters It shows the predictable income a subscription business can plan around.
Where it is used Software company reports and investor updates.
How to calculate it Monthly recurring revenue × 12
Worked example MRR of €30k × 12 gives ARR of €360k.
Definitions vary. Some include one-off fees or usage charges, while others count only fixed subscriptions. Check how your organisation calculates it.
