ARR vs MRR: What Is the Difference and How to Calculate Both
Annual Recurring Revenue (ARR) and Monthly Recurring Revenue (MRR) are the two most critical SaaS metrics. ARR equals your MRR multiplied by 12 and represents your annualized subscription revenue. MRR is the total predictable revenue your business earns each month. Together, they give investors and operators a clear picture of revenue trajectory, growth rate, and business health.