Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the total predictable subscription revenue a business earns in a month, normalized to a monthly figure. It excludes one-off charges and is the headline metric for most SaaS and subscription valuations. For example, 200 customers each paying $50/month is $10,000 MRR; an annual plan billed at $600 contributes $50 to MRR. Buyers weigh MRR alongside its growth rate and churn, because $10,000 MRR growing 8% a month with low churn is worth far more than the same MRR shrinking.