How To Calculate Net Annual Recurring Revenue in AirTable | Arithmix

If you're running a business, you know that revenue is one of the most important metrics to track. But not all revenue is created equal. Net Annual Recurring Revenue (NARR) is a powerful metric that can help you understand the health of your business and make informed decisions about its future. In this article, we'll explain what NARR is, why it's valuable to calculate, and how you can do it using AirTable.

What Is Net Annual Recurring Revenue?

Net Annual Recurring Revenue, or NARR, is the amount of money your business makes from recurring subscriptions or contracts over the course of a year, minus any discounts, refunds, or cancellations. It's a measure of the predictable revenue your business can count on over time, and it's a key metric for businesses that rely on subscriptions or contracts for their revenue.

For example, if your business has 100 customers who each pay $10 per month for a subscription, your Monthly Recurring Revenue (MRR) would be $1,000. If you retain all of those customers for a year, your Annual Recurring Revenue (ARR) would be $12,000. But if 10 of those customers cancel their subscriptions during the year, your NARR would be $10,800.

When Is It Valuable To Calculate Net Annual Recurring Revenue?

NARR is particularly valuable for businesses that rely on recurring revenue streams, such as software-as-a-service (SaaS) companies, subscription box services, or membership-based organizations. By calculating NARR, you can get a clear picture of your business's financial health and make informed decisions about growth and expansion.

For example, if your NARR is growing steadily over time, it's a good sign that your business is healthy and that customers are satisfied with your product or service. On the other hand, if your NARR is stagnant or declining, it may be a sign that you need to make changes to your pricing, marketing, or product offering.

Overall, NARR is a powerful metric that can help you understand the health of your business and make informed decisions about its future. By tracking NARR in AirTable, you can get a clear picture of your business's financial health and make data-driven decisions about growth and expansion.

How Do You Calculate Net Annual Recurring Revenue in AirTable

AirTable itself isn’t naturally geared towards letting you calculate complex metrics like Net Annual Recurring Revenue. As an alternative, teams typically use products like Arithmix to import data from AirTable 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 AirTable, combine it with data from other systems, and create calculations like Net Annual Recurring Revenue.

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.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Net Annual Recurring Revenue in Arithmix

Calculating metrics like Net Annual Recurring Revenue is simple in Arithmix. Once you've created your free account, you’ll be able to import your AirTable data, and use it to create natural language formulas for metrics like Net Annual Recurring Revenue.

Arithmix is designed to give you the power to build any calculations you want on top of your AirTable data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.