Monthly Recurring Revenue (MRR)
Monthly recurring revenue is the measure of a business’ predictable monthly revenue resulting from all 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.