MRR (Monthly Recurring Revenue) is the total predictable revenue generated each month from active subscriptions.
MRR breaks down into: New MRR (new customers), Expansion MRR (upgrades), Contraction MRR (downgrades), Churn MRR (cancellations). Net New MRR is the sum. ARR = MRR × 12. SaaS investors look for consistent MRR growth >10% MoM at early stage, 5-15% MoM at growth stage. Tools: ChartMogul, Baremetrics, ProfitWell.
MRR is the heartbeat metric of a subscription business. Its components — new, expansion, contraction, churn — explain growth far more clearly than the headline total alone.
A SaaS company has 500 customers on $50/month and 100 on $200/month, giving an MRR of (500 × 50) + (100 × 200) = $45,000. Tracking MRR by component (new, expansion, contraction, churn) shows where growth is actually coming from.
MRR is not the same as monthly revenue. It excludes one-time fees, professional services and other non-recurring items, and normalizes annual plans to a monthly equivalent.
Always look at net new MRR (new + expansion − contraction − churn), not gross new MRR; gross numbers can hide a quietly leaking business.
MRR (Monthly Recurring Revenue) falls under the Business category.
These tools put mrr into practice. Compare features, pricing, and ratings:
Now that you understand MRR, explore the best tools in this category.