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:


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