Metrics
MRR or ARR: Which Should You Report?
When each number helps, and when it gets in the way.
Marcus Hale
4 min read
Monthly recurring revenue and annual recurring revenue measure the same thing at different scales. ARR is usually MRR multiplied by twelve.
Use MRR to run the company
MRR moves quickly enough to show what happened this month. New sales, upgrades and churn all appear right away.
Use ARR to talk about size
ARR suits annual contracts and conversations with investors, because it describes the size of the business in one figure.
Pick one as your main number, and show how it is calculated wherever you report it.
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