Understanding ARR (Annual Recurring Revenue) #
ARR is MRR projected to a full year. DMSI Analytics displays ARR alongside MRR on the Revenue page.
What is ARR? #
ARR shows the annualized value of your current recurring revenue base.
Formula:
ARR = Current MRR x 12
When to Use ARR vs MRR #
| Use MRR When… | Use ARR When… |
|---|---|
| Tracking monthly growth | Comparing to annual targets |
| Monitoring churn impact | Reporting to investors or stakeholders |
| Day-to-day operational decisions | Annual planning and forecasting |
ARR Widget #
The ARR dashboard widget shows:
– Current ARR (MRR x 12)
– ARR change vs prior month (annualized)
– ARR vs your ARR goal (if you have set one)