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How to Calculate Annual Recurring Revenue per Customer in HubSpot

Making the most of your HubSpot data

What is Annual Recurring Revenue per Customer?

Annual Recurring Revenue per Customer (ARR) is the amount of revenue that a customer brings in over the course of a year.

ARR is calculated by taking the total revenue generated from a customer over the course of a year and dividing it by the number of months in a year.

ARR is a great metric to use to determine the value of your customers. It's also a great way to determine how much you should be spending on customer acquisition.

For example, if you have a customer that generates $1,000 in revenue over the course of a year, you should be spending $333.33 on customer acquisition.

For a more detailed explanation of ARR, check out this blog post .

How do you calculate Annual Recurring Revenue per Customer in HubSpot?

It can be difficult to calculate Annual Recurring Revenue per Customer directly inside of HubSpot; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your HubSpot data. You simply connect Causal to your HubSpot account, and then you can build formulae in Causal to calculate your Annual Recurring Revenue per Customer.

What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Annual Recurring Revenue per Customer. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

A comparison of formulae in Excel and Causal

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

A gif showing how users can adjust model inputs, and how they're reflected in dashboards

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Annual Recurring Revenue per Customer.

A gif showing how you can build visuals in Causal

Start building models with your 

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