SaaS

What is MRR (Monthly Recurring Revenue)?

Definition

The normalized monthly income a company earns from active subscriptions. MRR lets operators compare revenue across months regardless of billing cycles, discounts, or mid-month sign-ups.

Related Terms

ARR (Annual Recurring Revenue)SaaS

The total predictable revenue a subscription business expects to earn over a 12-month period. ARR is a core health metric for SaaS companies because it smooths out monthly fluctuations and reveals long-term growth trends.

Churn RateSaaS

The percentage of customers or revenue lost during a given period. High churn signals product-market fit issues, while negative net-revenue churn (expansion outpaces losses) is the gold standard for growth-stage SaaS.