300,000 is the example result. Read it using the units and relationship stated below.
ARR uses monthly recurring revenue.
Separating growth, retention and subscription capacity
For arr, the relationship is Result = [Monthly recurring revenue] × 12. The amount depends on the supplied monthly recurring revenue, rather than a live market price or a value imported from another record. Recurring revenue should be compared across the same starting cohort. Expansion, contraction and churn change retention in different directions. Adding new customers to a retained-customer calculation can conceal losses in the original population.
Source and result record
For arr, retain Monthly recurring revenue together with the output. Record the date of the source values and the unit convention used in the form. That record separates a change in the underlying case from a change in how the information was entered. A saved result without its source values cannot show which assumption produced it.
Example with the supplied inputs
Monthly recurring revenue: 25000. Result: 300,000. The values are illustrative.
Compare one changed input
Monthly recurring revenue changes from 25000 to 27500. The result becomes 330,000. All other inputs remain fixed.
Calculation rule
Result = [Monthly recurring revenue] × 12
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Monthly recurring revenue | 25000 | Use monthly recurring revenue on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 300,000 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Monthly recurring revenue. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Monthly recurring revenue on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 300,000.
Change Monthly recurring revenue from 25000 to 27500 while keeping every other value fixed. The result becomes 330,000. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.