ARR (Annual Recurring Revenue)

ARR is the annualized view of MRR — literally MRR × 12. It matters more once you cross into B2B or mid-market SaaS territory because that's how VCs, buyers, and comparables report. For indie founders, MRR is usually the more useful daily metric; ARR becomes relevant when raising capital or discussing valuation. A common mistake is using ARR when you have fewer than 6 months of MRR data — the annualization is a hypothetical, not a fact. Example: if your MRR is $4,200 in October, your ARR is $50,400 — but only if that MRR is stable. If you're still growing 20% month-over-month, the ARR figure is nearly useless as a forward estimate. The benchmark most indie SaaS founders use: $100K ARR ($8.3K MRR) is the first meaningful milestone that signals a real business, not just a side project. $1M ARR ($83K MRR) is the threshold that makes the business sellable on platforms like Acquire.com.