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Business Terms
MRR (Monthly Recurring Revenue)
Definition
The predictable revenue generated each month from subscriptions or recurring services.
Overview
MRR measures recurring revenue streams. It's a key metric for subscription businesses, showing growth, stability, and business health.
Example
50 customers at $100/month + 20 customers at $200/month = $9,000 MRR.
Best Practices
Track MRR growth, monitor churn impact, and forecast revenue.
Common Mistakes to Avoid
Including one-time revenue
Not tracking churn impact
Inconsistent calculation
Frequently Asked Questions
How do I grow MRR?
Acquire new customers, reduce churn, and increase revenue per customer through upgrades.