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Glossary

MRR (Monthly Recurring Revenue)

The predictable subscription revenue a business earns each month, normalized to a monthly figure.

Monthly Recurring Revenue (MRR) is the total predictable revenue a subscription business generates in a month. Annual plans are normalised to a monthly value, and one-off charges are excluded, so MRR reflects the recurring baseline you can forecast against.

MRR is the core health metric for SaaS. Tracking new, expansion, contraction, and churned MRR shows not just how fast you're growing but why — which is why billing and analytics tooling report it prominently.

See also
  • Best analytics tools for SaaS
  • Best subscription billing software

Related terms

Churn rateThe percentage of customers (or revenue) a business loses over a given period. Lower is better.Merchant of Record (MoR)A company that sells your product on your behalf and takes on tax, compliance, and chargeback liability.
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