MRR
Monthly recurring revenue
Example
Our MRR has been dropping for the past three months
Well, we did raise prices while stripping out features
Related Slang
ARR | Annual recurring revenue |
KPI | Key performance indicator |
PBT | Profit before tax |
YTD | Year-to-date |
Q1 | First quarter |
EPS | Earnings per share |
APR | Annual percentage rate |
Businesses use MRR as shorthand for "monthly recurring revenue." This metric measures the recurring income a business expects to receive each month - usually via subscriptions.
For example, a SaaS business with 300,000 annual subscribers, each of whom pays $12 a month, has an MRR of $3.6 million. Keeping track of this metric allows a business to forecast their future revenue, identify when they've gained or lost monthly revenue, and set targets for future growth.