ARR as a Percentage of Total Revenue
Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is ARR as a Percentage of Total Revenue?
ARR as a Percentage of Total Revenue measures the percentage of your total revenue that comes from recurring revenue as opposed to one-time or non-subscription revenue.
ARR as a Percentage of Total Revenue Formula
How to calculate ARR as a Percentage of Total Revenue
Say your ARR is $100,000 and your total revenue is $120,000. Your percentage of ARR out of total revenue is about 83%.
Start tracking your ARR as a Percentage of Total Revenue data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data.
Get PowerMetrics Free
How to visualize ARR as a Percentage of Total Revenue?
Line charts are the best way to visualize ARR as a percentage of total revenue. This will let you easily identify changes in trends over time. In short, any time this metric trends down below average, you may be at risk of losing stable income.
ARR as a Percentage of Total Revenue visualization example
ARR as a Percentage of Total Revenue
Line Chart
ARR as a Percentage of Total Revenue
Chart
Measuring ARR as a Percentage of Total RevenueMore about ARR as a Percentage of Total Revenue
ARR as a Percentage of Total Revenue gives you the percentage of your total revenue that consists of recurring revenue. This metric is important to track especially if you primarily employ a subscription-based billing model. By tracking ARR as a Percentage of Total Revenue, you are able to detect if too much of your revenue comes from one-off transactions which indicates you may need to prioritize your paying subscribers.
Metric Toolkit
Start tracking your ARR as a Percentage of Total Revenue data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data.
Get PowerMetrics FreeContributor
