# What Is ARR? Annual Recurring Revenue Explained for SaaS

DevFeed: [What Is ARR? Annual Recurring Revenue Explained for SaaS](<https://devfeed.tech/articles/what-is-arr-annual-recurring-revenue-explained-for-saas-10440.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/what-is-arr-annual-recurring-revenue/>)

Author: Ayush Agarwal

Published: 2026-04-08T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [SIEM, Security, Observability](<https://devfeed.tech/topics/siem-security-observability.md>)

Tags: [guide](<https://devfeed.tech/tags/guide.md>), [how-to](<https://devfeed.tech/tags/how-to.md>), [investors](<https://devfeed.tech/tags/investors.md>), [learn](<https://devfeed.tech/tags/learn.md>), [metric](<https://devfeed.tech/tags/metric.md>), [metrics](<https://devfeed.tech/tags/metrics.md>), [reporting](<https://devfeed.tech/tags/reporting.md>), [revenue](<https://devfeed.tech/tags/revenue.md>), [saas](<https://devfeed.tech/tags/saas.md>), [subscription](<https://devfeed.tech/tags/subscription.md>), [valuation](<https://devfeed.tech/tags/valuation.md>)

## AI overview

This guide explains Annual Recurring Revenue (ARR), including its definition, calculation from monthly or contract values, normalization across billing intervals, and differences from MRR, revenue, and bookings. It also discusses ARR's use in SaaS reporting and valuation and its limitations.

## Source excerpt

Learn what Annual Recurring Revenue (ARR) is, how to calculate it, why investors care about it, and how it differs from MRR, revenue, and bookings.