What is an ARR (Annual Recurring Revenue) for property SaaS?

ARR (Annual Recurring Revenue) for property SaaS is the total predictable, recurring revenue a software company expects to earn from its customers in one year, based on active subscriptions. It excludes one-time fees and is the most important top-line metric for SaaS businesses.

ARR Formula

ARR = Total Active Subscriptions × Annual Subscription Value

Or: ARR = MRR (Monthly Recurring Revenue) × 12

Why ARR Matters for Property SaaS

  • Gives investors a clear picture of business scale
  • Helps forecast future revenue and growth
  • Used as the basis for company valuation (typically 5–15x ARR for SaaS)
  • Tracks the health and momentum of the subscription base

ARR Components

  • New ARR: Revenue from newly acquired customers
  • Expansion ARR: Upsells or upgrades from existing customers
  • Churned ARR :Revenue lost from cancellations
  • Net New ARR: New ARR + Expansion ARR – Churned ARR

ARR is the north star metric for property SaaS companies seeking investment or planning expansion. A growing ARR with low churn signals a healthy, scalable business and is often the single most scrutinized number in any PropTech fundraising conversation.

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