What Is Annual Recurring Revenue (ARR)?
What is annual recurring revenue? It is the total value of recurring subscription revenue a business expects to collect over twelve months, normalized to an annual figure. One-time fees, professional services, and usage-based overages are excluded.
Calculate ARR from your subscription export and track new, expansion, and churned ARR separately
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Upload your spreadsheet.xlsx .xls .csv — free to try, no accountWhat this export contains
| Customer ID |
| Plan |
| MRR |
| Contract Start |
| Contract End |
| Status |
| Expansion MRR |
| Churned MRR |
| New MRR |
| ARR |
What usually goes wrong with it
MRR and ARR get confused in subscription exports
Subscription exports from Stripe or Chargebee show MRR as the line-item metric. Multiplying by 12 gives a rough ARR, but multi-year contracts and discounted annual plans require contract-level adjustment.
DataMimi Datamimi converts MRR to ARR by contract, handling annual plans that are already annualized and monthly plans that need multiplication — in a single pass without requiring a helper column.
Churned ARR disappears from the active subscription view
A standard filter on 'active' contracts hides cancelled subscriptions, making it impossible to calculate net ARR change without pulling a separate churn export.
DataMimi It includes cancelled contracts in the ARR waterfall, showing churned ARR as a separate row so net ARR change is calculable from one file.
Expansion ARR is buried in plan upgrade records
When a customer moves from a $500 monthly plan to an $800 monthly plan, the expansion ARR of $3,600 a year sits in a plan-change record that most subscription exports exclude from the main view.
DataMimi Datamimi extracts the delta between old and new plan MRR for upgrade records and calculates expansion ARR per customer per period.
Common questions
What is annual recurring revenue as a formula?
ARR = MRR × 12 for monthly subscriptions. For annual contracts, ARR equals the contract value divided by the contract term in years. Exclude one-time fees, setup charges, and non-recurring usage overages.
What is annual recurring revenue vs MRR?
MRR is the monthly normalized figure; ARR is the annual figure. For a company with $100,000 MRR, ARR is $1.2M. Investors and boards typically track ARR; finance teams working month-to-month often prefer MRR.
What does a healthy ARR growth rate look like?
Early-stage SaaS companies often target 2–3× ARR year-over-year. At $10M ARR and above, 50–100% growth is considered strong. The Rule of 40 (ARR growth rate + profit margin ≥ 40%) is a common efficiency benchmark.
What does Datamimi cost?
Free: $0/month, 40 credits, no credit card required. Lite: $9/month, 400 credits. Starter: $24/month, 1,500 credits, up to 3 simultaneous files. Pro: $59/month, 5,000 credits with rollover. Team: $199/month, 20,000 credits, 5 users.
Try it with your own file
DataMimi reads the file you actually have — merged cells, headers below row one, totals pasted at the bottom — and shows which rows and columns every number came from.
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