Predictable subscription revenue normalized to a monthly figure.
MRR (and its yearly sibling ARR) is the heartbeat metric of subscription businesses. Track its components — new, expansion, contraction, churned — not just the headline.
Example: 850 customers × $49 = $41,650 MRR ≈ $500k ARR.
FAQ
What is MRR in simple terms?
MRR (and its yearly sibling ARR) is the heartbeat metric of subscription businesses. Track its components — new, expansion, contraction, churned — not just the headline.