Quick definition · 2 min Builder & startup term
ARR
ARR (annual recurring revenue) is the predictable subscription revenue a business earns in a year.
Think of it like
A salary vs one-off gigs. ARR is the dependable yearly paycheck a subscription business can count on.
Example
A thousand customers paying 10 dollars a month is 120,000 dollars in ARR.
Why it matters
ARR is how subscription and AI businesses measure size and growth. You will see it in every startup update.
Where you’ll see it
SaaSinvestor updates