Annual Share
The portion of MRR on annual contracts — the quietest lever on how durable your revenue is.
What is it?
Annual Share is the portion of your MRR that sits on annual contracts rather than month-to-month plans. It is a direct measure of how durable your revenue base is: annual customers have pre-committed to a full year and cannot churn on a whim.
A higher annual share smooths cash flow, reduces involuntary churn and makes revenue far more predictable. It is one of the quietest levers on retention — you improve it not by keeping customers longer, but by locking them in up front.
How to calculate?
Divide the MRR on annual or longer contracts by total MRR, normalising annual plans to their monthly value first so the comparison is like-for-like. Forty-eight percent means nearly half your revenue is pre-committed for a year.
Track it as you push annual pricing: a rising annual share should show up later as lower monthly churn and steadier growth.