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Try demoMRR (monthly recurring revenue) is the predictable subscription revenue a business earns each month, with yearly plans counted as one twelfth per month.
MRR adds up the monthly value of every active subscription. A $20 monthly plan adds $20; a $240 yearly plan adds $20. One-off purchases such as credit top-ups are usually tracked separately.
Growth is often broken down into new MRR, expansion MRR from upgrades, contraction from downgrades and churned MRR from cancellations.
Investors and buyers value SaaS businesses mainly on recurring revenue, so a clean MRR number matters even for small products.
Aikeedo’s admin dashboard shows revenue, subscriptions and usage, and the revenue simulator helps you model MRR before you launch.
Discover more terms connected to this one
ARR (annual recurring revenue) is the yearly value of all active subscriptions, usually MRR multiplied by twelve.
Churn rate is the share of customers, or of recurring revenue, lost in a period, usually a month, through cancellations and failed renewals.
LTV (customer lifetime value) is the total gross profit a business expects from one customer over the whole time they stay a customer.