Monthly Recurring Revenue
Definition
Monthly Recurring Revenue: Monthly Recurring Revenue (MRR) is the predictable revenue a subscription business expects to receive every month. It's calculated by multiplying the number of subscribers by the average revenue per user (ARPU). MRR is the most important metric for SaaS companies because it indicates business health and growth trajectory.
Example Usage
“Our MRR grew from $10K to $50K in six months after we improved onboarding and reduced churn.”
Common Misconceptions
Related Terms
Annual Recurring Revenue
Annual Recurring Revenue (ARR) is the yearly value of recurring subscription revenue, calculated as MRR multiplied by 12. ARR is the primary metric fo...
Churn Rate
Churn rate measures the percentage of customers or revenue lost over a period. Customer churn counts lost accounts, while revenue churn measures lost...
Customer Lifetime Value
Customer Lifetime Value (LTV) is the total revenue a business can expect from a single customer account over the entire relationship. LTV is calculate...
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