What does ARR mean?
Annual Recurring Revenue - the yearly value of recurring subscription revenue. Calculated by multiplying MRR by 12.
Indie context: The bigger brother of MRR. While indie hackers track MRR daily, ARR is what you brag about when you hit milestones. "$100K ARR" sounds way better than "$8.3K MRR."
ARR
Annual Recurring Revenue - the yearly value of recurring subscription revenue. Calculated by multiplying MRR by 12.
💡 The bigger brother of MRR. While indie hackers track MRR daily, ARR is what you brag about when you hit milestones. "$100K ARR" sounds way better than "$8.3K MRR."
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Related Terms
MRR
Monthly Recurring Revenue - the predictable revenue a SaaS business generates each month from active subscriptions.
Churn
The rate at which customers cancel their subscriptions or stop using your product. Usually expressed as a monthly or annual percentage.
LTV
Lifetime Value - the total revenue you can expect from a single customer over the entire duration of their relationship with your product.
SaaS
Software as a Service - a business model where software is hosted in the cloud and sold as a subscription, rather than a one-time purchase and download.
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