ARR calculation

User: "Anshi"
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Updated by Heather Wendt

Hello Everyone! Very excited to begin my first discussion thread here. :)

I do understand ARR generally is MRR X 12. But what happens when customer contract is shorter and is less than 12 months, say just 10 or 11 months. In that case, is ARR still MRR x 12 OR it is MRR x contract duration?

Look forward to thoughts and inputs.

Thank you!

Anshi

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