Monthly Recurring Revenue (MRR)

Monthly recurring revenue is a measure of your business’ predictable monthly revenue resulting from all your active subscriptions. It is calculated by multiplying the number of paying customers by the monthly subscription fee. MRR provides businesses with a more accurate and predictable way to forecast revenue and growth, as it takes into account the recurring nature of subscription-based businesses. By increasing MRR, businesses can improve their cash flow, reduce customer acquisition costs, and increase customer lifetime value. MRR is commonly used in Software-as-a-Service (SaaS) businesses, as well as in other subscription-based industries such as media, telecommunications, and eCommerce.