Average recurring revenue is one of the key metrics for every subscription/SaaS business. If you are not sure how to calculate, read on!

Please watch our Youtube video for a detailed walk-through explaining how to calculate average recurring revenue for a SaaS business with one-month subscriptions and a one-month free trial. We will discuss how to perform the calculation even if you are pre-revenue as well as how to formulate assumptions.

Note that in this case the average recurring revenue is NOT the same for all subscriptions and for all paying subscriptions, but not every subscription generates revenue. It is not the case for when the subscription term is one month. For that case, check out our blog "How to calculate MARR for one-month subscriptions".

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