Annual Recurring Revenue (ARR) is the year‑long projection of your subscription revenue. By turning your Monthly Recurring Revenue (MRR) into an annual figure, ARR helps you:
Set long‑term growth targets and budgets
Benchmark performance for fundraising or valuation
Understand the full‑year impact of subscription changes at a glance
1 | How Grow Slash Calculates ARR
Formula
ARR = MRR × 12
Grow Slash multiplies the latest monthly MRR figure by 12. Because ARR is derived directly from MRR, all rules that govern MRR—such as metered‑revenue timing, discount handling, and interval conversion—apply automatically to ARR.
ARR change percentage
ARR Change % = (Current ARR − Previous ARR) ÷ Previous ARR × 100
This percentage highlights year‑over‑year momentum for board packs or investor updates.
2 | ARR Movement – Tracking Annualized Change
Net ARR Movement = Net MRR Movement × 12
Each daily Net MRR Change (New Business, Expansion, Contraction, Churn, Reactivation) is simply scaled by 12, showing the full‑year revenue impact of every subscription event.
3 | Key Considerations
Shared logic with MRR – Metered‑revenue timing, refund treatment, and the exclusion of one‑time fees all carry over automatically from MRR to ARR.
Consistent filters – ARR values live in the same data model as MRR, so every dashboard filter and segment behaves identically.
Need help? – For scenario‑specific calculations or accounting questions, email metrics@growslash.com and our metrics specialists will be happy to assist.