Chart: Annual Run Rate (ARR)
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Annual Run Rate (ARR) charts the annualized equivalent of your monthly recurring revenue (MRR).
TL;DR
Annual Run Rate (ARR) charts the change in annualized MRR for all active and past due subscriptions over time.
How long does it take to reach $1 million ARR?
Almost half of software companies reach their first million in ten years. Just 3.3% of startups reach $1 million in under a year. 13.4% reach $1 million in under 3 years. And 25.1% reach that figure within 5 years. Read the full report here.
To evaluate your ARR growth compared to industry peers, use Benchmarks. Then, set a target to track your ARR goal.
Chart Notes
- Only active and past due subscriptions contribute to this chart.
- Only subscription invoice line items contribute to this metric. One-time (non-recurring) line items do not.
- Subscriptions billed in foreign currencies are converted to your primary currency. Learn more.
Calculation
ChartMogul calculates Annual Run Rate as MRR for the period multiplied by 12.
Chart Data
Use the drop-down to show All MRR Movements or Net MRR Movements.
Learn more about Chart Data.
Next Steps
- Read our blog post What is ARR? It’s not as simple as you think.
- Track this metric from your phone with the ChartMogul mobile app.
- See which accounts contribute to the highest ARR growth with our Find out which animal(s) you’re hunting tutorial.