ARR Growth Rate

ARR growth rate measures the percentage increase in annual recurring revenue over a period.

ARR growth rate measures how quickly annual recurring revenue grows from one period to another.

Formula

ARR growth rate = (Ending ARR - Beginning ARR) / Beginning ARR

ARR growth is most useful when paired with retention, acquisition efficiency, and profitability. Compare stage-specific ranges in SaaS ARR growth benchmarks.

Related calculator: ARR Growth Rate Calculator.