MRR and ARR

Caleido reports MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) by combining dimension labeling with report formulas. MRR is the foundation: ARR is derived from it by multiplying monthly recurring revenue by twelve.

​

Quick guide

The video below gives a short walkthrough of how to report MRR and ARR. It was recorded in an earlier version of Caleido, so some buttons look different.

​

Recurring revenue starts with labeling

Your bookkeeping usually doesn’t tell recurring revenue apart from one-off sales. In Caleido you add that information with a dimension, for example one with the items Recurring and Non-recurring. You label revenue directly in the report:

• Select the revenue rows or cells that are recurring
• Right-click and choose Label selected…, or use Actions > Modify > Label selected…
• Choose the Recurring dimension item in the Label window and click Apply

You can also create a rule so that future transactions from the same source are labeled automatically. See Label data on a report.

​

How MRR and ARR are calculated

Once revenue has been labeled:

• MRR is revenue filtered by the Recurring dimension item, shown per month
• ARR is a formula row in the report template: recurring revenue multiplied by 12

Because MRR and ARR are calculated from labeled transactions and budget items, they update automatically when new data arrives from your accounting. The same logic works for budgets and forecasts, so you can compare actual and planned recurring revenue side by side. Learn how to add formula rows in Edit a report.

​

Visualizing MRR

Recurring revenue is easiest to follow as a chart. Select the MRR row, right-click and choose Create chart… to open it in the chart editor. From the chart editor’s Actions menu you can Export chart as PNG or Copy chart as image, and you can add the chart to a workbook. See Build a chart. The ready-made SaaS P&L template already splits revenue into recurring and non-recurring. Learn more in Use the report library.