How To Calculate Net Annual Recurring Revenue in Odoo ERP | Arithmix

Calculating net annual recurring revenue (NARR) is an essential task for any business that relies on recurring revenue streams. NARR is a metric that measures the total amount of recurring revenue a business generates over a year, after accounting for any cancellations, refunds, or discounts. NARR is a critical metric for businesses that rely on subscription-based models, as it helps them understand the health of their business and make informed decisions about future growth and investment.

What Is Net Annual Recurring Revenue?

Net Annual Recurring Revenue (NARR) is a metric that measures the total amount of recurring revenue a business generates over a year, after accounting for any cancellations, refunds, or discounts. NARR is a critical metric for businesses that rely on subscription-based models, as it helps them understand the health of their business and make informed decisions about future growth and investment.

Calculating NARR is relatively straightforward. First, you need to determine the total amount of recurring revenue generated over a year. This includes all subscription fees, monthly payments, and any other recurring revenue streams. Next, you need to subtract any cancellations, refunds, or discounts from this total. The resulting figure is your NARR.

When Is It Valuable To Calculate Net Annual Recurring Revenue?

Calculating NARR is valuable for any business that relies on recurring revenue streams. This includes businesses that offer subscription-based services, software-as-a-service (SaaS) companies, and any other business that generates recurring revenue. By tracking NARR, businesses can gain valuable insights into the health of their business and make informed decisions about future growth and investment.

For example, if a business sees a decline in NARR over time, it may be an indication that customers are canceling their subscriptions or that the business is losing market share to competitors. On the other hand, if a business sees an increase in NARR, it may be a sign that the business is growing and acquiring new customers.

Overall, calculating NARR is a valuable metric for any business that relies on recurring revenue streams. By tracking NARR over time, businesses can gain valuable insights into the health of their business and make informed decisions about future growth and investment.

How Do You Calculate Net Annual Recurring Revenue in Odoo ERP

Odoo ERP 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 Odoo ERP 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 Odoo ERP, 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 Odoo ERP 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 Odoo ERP 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.