# How To Calculate ARR Booking Target in Drip | Arithmix

Learn how to accurately calculate your ARR booking target in Drip with our step-by-step guide. Maximize your revenue potential and optimize your marketing strategy with this essential tool.

Calculating the Annual Recurring Revenue (ARR) Booking Target in Drip can help you set realistic goals for your business. ARR is the amount of revenue that a business expects to generate from its customers on an annual basis. The ARR Booking Target is the amount of ARR that a business aims to achieve in a given period, usually a year.

Calculating the ARR Booking Target requires you to have a clear understanding of your business's revenue streams and customer base. You need to know the average revenue per customer, the number of customers you have, and the expected growth rate of your customer base. Once you have this information, you can use a simple formula to calculate your ARR Booking Target.

The formula for calculating ARR Booking Target is:

ARR Booking Target = Average Revenue Per Customer x Number of Customers x Growth Rate

For example, if your average revenue per customer is \$100, and you have 1,000 customers, and you expect your customer base to grow by 20%, your ARR Booking Target would be:

\$100 x 1,000 x 1.2 = \$120,000

## What Is ARR Booking Target?

The ARR Booking Target is a key performance indicator (KPI) that helps businesses set revenue goals and measure their performance. It is a metric that is commonly used in subscription-based businesses, where revenue is generated through recurring payments from customers.

The ARR Booking Target is important because it provides a clear target for businesses to aim for. It helps businesses to focus on revenue growth and customer acquisition, which are critical factors for long-term success. By setting an ARR Booking Target, businesses can also track their progress over time and make adjustments to their strategy if necessary.

## When Is It Valuable To Calculate ARR Booking Target?

Calculating the ARR Booking Target is valuable for businesses of all sizes and industries. It is particularly useful for subscription-based businesses, such as SaaS companies, where revenue is generated through recurring payments from customers.

Calculating the ARR Booking Target is also valuable when a business is looking to grow its customer base and increase its revenue. By setting a clear revenue goal, businesses can focus their efforts on customer acquisition and retention, which are critical factors for growth.

Finally, calculating the ARR Booking Target is valuable when a business is looking to measure its performance and track its progress over time. By comparing actual revenue to the ARR Booking Target, businesses can identify areas where they are performing well and areas where they need to improve.

## How Do You Calculate ARR Booking Target in Drip

Drip itself isn’t naturally geared towards letting you calculate complex metrics like ARR Booking Target. As an alternative, teams typically use products like Arithmix to import data from Drip and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Drip, combine it with data from other systems, and create calculations like ARR Booking Target.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.