Alp SuleimanGrowth Partner

MRR / ARR

Monthly and Annual Recurring Revenue: the monthly and yearly totals of predictable, subscription-like revenue. One-off revenue is excluded.

Core MetricsTerm 23 / 81

Formula

ARR = MRR × 12

In practice

A common mistake is counting one-off items, or annual prepayments not spread across months, in MRR. Look at the components of the change (new, expansion, churn), not only the total.

Once the terms are clear, build the system.

Let’s pin down which metrics your company should watch and which lever to pull first.

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