Growth
Annual run rate
A projection, not a forecast: it assumes the current month repeats unchanged for a year.
The Formula
ARR = MRR x 12
A projection, not a forecast: it assumes the current month repeats unchanged for a year.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| ARR | Annual recurring revenue | currency | MRR carried forward twelve months. |
| MRR | Monthly recurring revenue | currency | The current month's normalised figure. |
What Each Symbol Means
ARRcurrency
Annual recurring revenue
MRR carried forward twelve months.
MRRcurrency
Monthly recurring revenue
The current month's normalised figure.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate mrr page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate MRR, filed under Business. Every number the guide produces comes from substituting into this one line.