Startup Dictionary
MRR
Definition
Monthly Recurring Revenue; income that a company can reliably anticipate every 30 days.
Deep Dive
Monthly Recurring Revenue (MRR) is a critical metric primarily for SaaS (Software as a Service) and subscription-based businesses, representing the total predictable revenue a company expects to generate from all active subscriptions and recurring services within a 30-day period. It is a standardized way to measure the regular, dependable income streams, excluding one-time fees, setup charges, or professional services. MRR provides a clear, consistent snapshot of a company's financial health and growth trajectory, enabling businesses to forecast future revenue with a high degree of confidence.
Examples & Use Cases
- 1A cloud software provider reporting $50,000 in monthly income from all active user subscriptions
- 2A streaming service calculating the aggregate sum of all its monthly subscriber fees
- 3A gym membership company totaling the revenue from all recurring monthly payments
Related Terms
ARR (Annual Recurring Revenue)Churn RateLTV (Lifetime Value)