acquisitionbeginner
ARR
Annual recurring revenue, usually MRR multiplied by 12.
What is ARR?
ARR estimates a SaaS business's annualized subscription revenue. It helps buyers compare asking price to revenue multiple, but it can overstate value if churn, discounts, or unstable customers are ignored.
In Vibe Coding
ARR is often used to discuss AI startup listings, but small AI products can have volatile retention, so buyers should not treat ARR as guaranteed future cash.
Example
$5,000 MRR is roughly $60,000 ARR if the revenue keeps renewing.
Why this matters
This matters because ARR appears repeatedly when building, deploying, debugging, or connecting services in vibe coding workflows.
When you'll hit this in practice
You will usually run into ARR when working on MRR Multiple Calculator.