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MRR (Monthly Recurring Revenue) is the predictable revenue a subscription business receives each month. Calculate: sum of all active subscription values normalized to monthly. For annual plans: divide by 12. MRR components: new MRR (new customers), expansion MRR (upsells), contraction MRR (downgrades), churned MRR (cancellations). Net MRR = new + expansion - contraction - churn. It's the pulse of your SaaS business.
Key What Is Mrr Takeaways
- MRR = sum of monthly subscription values
- Annual plans: divide by 12
- Components: new, expansion, contraction, churned
- Net MRR shows true monthly growth
- 5-10% MoM growth is healthy early stage
- Excludes one-time and variable revenue
- Track by segment and cohort
- Expansion MRR indicates product health
What Is Mrr Statistics
5-10%
healthy MoM growth
>100%
target NRR
12x
MRR × 12 = ARR
30-40%
expansion MRR goal
What Is Mrr FAQ
Expert Tips
Track net MRR, not just new
Churn can hide behind new customer growth
Segment by plan and customer type
Reveals which segments drive growth
Compare to MRR goals weekly
Catch problems early, not at month end