SaaS metrics
What is MRR (Monthly Recurring Revenue)?
MRR is Monthly Recurring Revenue: the predictable amount a subscription business bills each month.
MRR (Monthly Recurring Revenue) represents the total recurring revenue coming in each month, normalizing annual contracts to a monthly basis. It is the core metric of any subscription business because it makes revenue predictable and comparable over time.
Tracking how MRR evolves — splitting new customers, expansions, contractions and cancellations — shows the real health of growth, beyond a single month's gross billing.
Formula
MRR = nº de clientes × ticket médio mensalExample: 100 customers paying $50/mo = $5,000 MRR.
Use it in practice
SaaS Simulator
Frequently asked questions
Are MRR and revenue the same?
No. MRR counts only recurring, predictable revenue; total billing may include one-off sales and fees.
How do annual contracts factor into MRR?
You divide the annual amount by 12 to normalize the contract to a monthly basis.