Chargebee Metric
Subscription Billing
ARR = MRR × 12
Annual recurring revenue (ARR) is the annualised value of all active subscription contracts. It normalises monthly, quarterly, and annual billing cycles into a single yearly figure that represents predictable revenue.
Full guide: definition, formula, and benchmarksAnnual Recurring Revenue
Annual recurring revenue (ARR) is the annualised value of all active subscription contracts. It normalises monthly, quarterly, and annual billing cycles into a single yearly figure that represents predictable revenue.
How to calculate annual recurring revenue
Why annual recurring revenue matters for Chargebee users
ARR is the cornerstone metric for subscription businesses and the primary figure investors use to value SaaS companies. A steadily growing ARR signals product-market fit and effective go-to-market execution.
For Chargebee users, ARR consolidates revenue across diverse billing frequencies. Tracking it alongside net new, expansion, and churned ARR components gives a complete picture of growth health.
Understand and act on annual recurring revenue with KPI Tree
Sync Chargebee subscription data into your warehouse and let KPI Tree calculate ARR from active MRR. Build a metric tree decomposing ARR into new, expansion, contraction, and churned segments with clear ownership at each level.
Configure weekly alerts so leadership spots ARR deceleration early, with drill-down links to the contributing segments.
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Pull metrics from Chargebee directly through the Model Context Protocol.
Connect your existing warehouse where Chargebee data already lands.
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Related Chargebee metrics
Monthly Recurring Revenue
Subscription BillingMetric Definition
MRR = Sum of (Active Subscription Monthly Value)
Monthly recurring revenue (MRR) is the normalised monthly value of all active subscriptions. It aggregates annual, quarterly, and monthly plans into a single monthly figure for consistent period-over-period comparison.
Net Revenue Retention
Subscription BillingMetric Definition
NRR = ((Start MRR + Expansion - Contraction - Churn) / Start MRR) × 100
Net revenue retention (NRR) measures the percentage of recurring revenue retained from existing customers, including expansions, contractions, and churn. An NRR above 100% means existing customers generate more revenue than they did a year ago.
Revenue Churn Rate
Subscription BillingMetric Definition
Revenue Churn Rate = (Churned MRR / Start-of-Period MRR) × 100
Revenue churn rate (also called MRR churn rate) is the percentage of recurring revenue lost from cancellations and downgrades in a given period. It captures the monetary impact of attrition, which can differ significantly from customer churn rate.
Subscription Growth Rate
Subscription BillingMetric Definition
Subscription Growth Rate = ((End Subscribers - Start Subscribers) / Start Subscribers) × 100
Subscription growth rate measures the net percentage change in active subscribers over a period. It accounts for new subscriptions, reactivations, and cancellations to show the overall trajectory of your subscriber base.
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