MRR
Monthly Recurring Revenue
In one line
Monthly recurring revenue (MRR) is the sum of subscription revenue you can reliably expect each month — the headline growth signal for any subscription or SaaS business.
Going deeper
MRR captures only the revenue you can count on every month — subscriptions and ongoing fees, not one-off consulting or setup charges. Stripping out the noise gives you a much cleaner read on real growth speed.
The single MRR number rarely tells the full story. Most teams break it into New, Expansion, Contraction and Churn MRR — new signups, upgrades, downgrades and cancellations respectively. Those four numbers alone usually expose where the business is leaking.
Don't confuse MRR x 12 with ARR. As annual contracts grow, ARR can look stable even when monthly MRR is wobbly, so both numbers belong on the dashboard.
Related terms
ARR
Annual recurring revenue (ARR) is recurring revenue normalised to a yearly view — the standard yardstick investors use to size a SaaS business.
MarketingNRR
Net revenue retention (NRR) measures how much of last year's customer cohort revenue you've kept and grown a year later — the cleanest single read on SaaS business health.
MarketingChurn Rate
Churn rate is the percentage of customers who leave or cancel during a given period — effectively the mirror image of retention.
MarketingLTV
Lifetime value (LTV) is the estimated total revenue — or profit — a single customer is expected to generate over the entire relationship with your business.
MarketingRetention
Retention is the share of users who continue to use or purchase from your product over time after their first touch — a primary signal of long-term product health.
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