ARR — Annual Recurring Revenue

Definition

The annualized run-rate of recurring revenue.

Formula

ARR = MRR x 12

Worked Example

MRR $84,000:

ARR = $84,000 x 12 = $1,008,000

Interpretation & Pitfalls

ARR is a run-rate, not a forecast — it assumes today's book of business holds for a year. Churn and expansion will both bend it.

In TupicFinance

ARR is derived from live MRR on the KPI dashboards.