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Annual Recurring Revenue (ARR) Chart

The Annual Recurring Revenue (ARR) chart is an annualized estimation of your recurring revenue. To compute it, we simply multiply MRR by 12. Learn more about how MRR is measured here.

Revenue type​

The ARR chart allows you to select and visualize three different revenue definitions:

  1. Revenue: The total annual recurring revenue that would be generated by the active subscriptions in a given period.
  2. Revenue (net of taxes): The annual recurring revenue that would be generated by the active subscriptions in a given period (as defined above), minus our estimate of revenue deducted from the stores for taxes (e.g. VAT, DST, etc).
  3. Proceeds: The annual recurring revenue that would be generated by the active subscriptions in a given period (as defined above), minus our estimate of revenue deducted from the stores for taxes and commission.

Proceeds reflect RevenueCat's estimate of what you will earn from the stores for the revenue you generated, but keep in mind that the App Store's payment schedule is based on Apple's Fiscal Calendar, which does not align with calendar months. Learn more here.

In addition, to learn more about how RevenueCat estimates taxes and commissions deducted from the stores, click here.

Available settings​

  • Filters: Yes
  • Segments: Yes
  • Revenue Type: Yes

How to use Active Subscriptions Movement in your business​

ARR is a common benchmark for subscription companies, and as such is a good way to measure the scale of your business. To understand what’s driving your ARR, segment by key subscriber segments like Store or Product Duration.

Calculation​

For each period, we multiply its MRR by 12 to yield the ARR for that period. Learn more about how MRR is measured here.

FAQs​

QuestionAnswer
What counts as an active paid subscription for the ARR measurement?Any paid, unexpired subscription is considered active. Learn more here.
Does ARR exclude subscriptions with auto-renewal disabled?No, ARR includes normalized annual revenue from all active paid subscriptions – even if their auto-renew status is currently disabled. Because of this, if churning subscriptions are not replaced by new paid subscriptions, ARR will be higher than actual realized revenue over a given period.
Are non-recurring subscriptions, consumable, or one-time purchases included in ARR?No, since these purchases do not represent recurring revenue, they are not included in the ARR calculation.
Is ARR calculated before commission and taxes?Yes, ARR is calculated using the gross price of your active subscriptions. Commission & taxes deducted by the stores would need to be additionally deducted from ARR to understand expected proceeds.