Metrics & KPIsAlso known as: ARR (Annual Recurring Revenue)
MRR
Monthly Recurring Revenue - predictable revenue a business expects to receive every month.
Full Definition
MRR (Monthly Recurring Revenue) is the predictable, recurring revenue a subscription business can expect to receive every month. It's the most important metric for SaaS companies and is used to track growth, forecast revenue, and calculate company valuation. MRR includes new MRR (from new customers), expansion MRR (upgrades), and accounts for churned MRR (lost customers).
Formula
MRR = Number of subscribers × Average revenue per user (ARPU)
Examples
- 1100 customers at $50/month = $5,000 MRR
- 2SaaS companies are often valued at 10-15x ARR (MRR × 12)