TLDR Founders · STRATEGIES & TACTICS
HOW TO CALCULATE TERMINAL ARR FOR STARTUPS
Summary from the TLDR Founders newsletter
Terminal ARR is the maximum revenue a company is expected to stabilize at given current growth strategies and customer retention. By understanding terminal ARR and its underlying metrics - gross new ARR and gross revenue retention - founders can set priorities to improve or structurally change their business to focus on either increasing new ARR or improving customer retention.