ARR (Annual Recurring Revenue)
ARR (Annual Recurring Revenue) is mRR multiplied by 12. If your MRR is $50,000, your ARR is $600,000. It's the standard way SaaS companies describe their size. "$1M ARR" is a common milestone that means you've found real traction. Enterprise SaaS companies think in ARR, consumer ones in MRR.
Definition
MRR multiplied by 12. If your MRR is $50,000, your ARR is $600,000. It's the standard way SaaS companies describe their size. "$1M ARR" is a common milestone that means you've found real traction. Enterprise SaaS companies think in ARR, consumer ones in MRR.
Related Terms
More Business & Contracting Terms
MVP - Minimum Viable Product
The simplest version of your product that still solves the core problem. Ship fast, learn from real users, then improve. Don't build everything at once.
POC - Proof of Concept
A small test to prove an idea actually works before investing serious time or money. It's not a product—it's evidence that building the product makes sense.
Prototype
A working model of your product used for testing and feedback. It doesn't need to be pretty or complete—it needs to let people interact with your idea.
Wireframe
A basic sketch showing the layout and structure of a page without any design polish. Think blueprint, not finished building. It's about where things go, not how they look.
Mockup
A high-fidelity visual design showing exactly how the final product will look. Unlike wireframes, mockups include colors, typography, and real content.