MRR (Monthly Recurring Revenue) is the stable revenue that recurs every month in a subscription model. The "heartbeat" of a SaaS or subscription business.
Back to the knowledge baseMRR (Monthly Recurring Revenue) is the predictable revenue that returns each month in a subscription business. Unlike a one-time payment, it's stable and forecastable — which is why it's one of the most important metrics for SaaS.
MRR growth is driven by three factors: new customers, upgrades (expansion) from existing ones, and churn. For steady growth, curbing churn is the most effective way to raise MRR.
MRR is monthly recurring revenue. ARR (Annual Recurring Revenue) is yearly, usually MRR × 12. ARR shows the annual picture, MRR the monthly dynamics.
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