Comparison
MRR vs ARR
MRR normalizes recurring revenue to a monthly view; ARR annualizes recurring revenue for higher-level planning.
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Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue is predictable recurring subscription revenue normalized to a monthly view.
MRR = Sum of active recurring subscription revenue in a month- Category
- Analytics & Measurement
- Used for
- Forecasting, Budget allocation, Performance diagnosis
Annual Recurring Revenue (ARR)
Annual Recurring Revenue is predictable recurring subscription revenue normalized to an annual view.
ARR = MRR x 12- Category
- Analytics & Measurement
- Used for
- Forecasting, Budget allocation, Performance diagnosis