TLDR Founders · STRATEGIES & TACTICS

HOW TO CALCULATE TERMINAL ARR FOR STARTUPS

news.crunchbase.com3 min read

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.