MRR (Monthly Recurring Revenue)
MetricRevOps
The monthly equivalent of ARR. Useful for tracking month-over-month growth trends.
What is MRR?
Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue from all active subscriptions. It represents how much recurring revenue a SaaS business generates each month and is often considered the core “heartbeat” metric of a subscription business.
How to Calculate MRR
Formula:
MRR = Sum of all monthly subscription fees from active customers
- For monthly subscriptions: use the monthly fee directly.
- For annual contracts: divide the annual contract value (ACV) by 12 to normalize it to a monthly amount.
Example: