Chart: Annual Run Rate (ARR)

The Annual Run Rate (ARR) chart tracks the annualized equivalent of your Monthly Recurring Revenue (MRR) over time — calculated simply as MRR × 12. 

For SaaS businesses, ARR is one of the most widely used benchmarks for measuring business scale and growth trajectory, making it a key metric for investors, board reporting, and goal-setting. Use this chart to monitor ARR momentum and compare your growth against industry peers.

If you're new to ChartMogul, get to know how charts work.

Annual Run Rate chart

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

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.

Screenshot of the Chart Data drop-down showing two options: All MRR Movements and Net MRR Movements.

Learn more about Chart Data.

Next Steps

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