Definition
The predictable revenue a subscription business expects to receive every month from active customers.
Why it matters for growth
MRR is the core health metric of a subscription business, since it converts irregular contract terms into one comparable monthly number for tracking growth.
Example
A company with 100 customers paying $50 a month has $5,000 in MRR, which it tracks weekly to catch any sudden dip early.
FAQ
- What is Monthly Recurring Revenue (MRR)?
- The predictable revenue a subscription business expects to receive every month from active customers.
- Why does Monthly Recurring Revenue (MRR) matter for growth?
- MRR is the core health metric of a subscription business, since it converts irregular contract terms into one comparable monthly number for tracking growth.
- What is an example of Monthly Recurring Revenue (MRR)?
- A company with 100 customers paying $50 a month has $5,000 in MRR, which it tracks weekly to catch any sudden dip early.