Monthly Recurring Revenue (MRR) is a key metric for subscription-based businesses, especially in SaaS. It refers to the predictable revenue you can expect to earn every month from active subscriptions.
It excludes one-off payments, setup fees, or variable charges — and focuses purely on consistent, repeatable income. MRR helps you track growth, forecast revenue, and understand how upgrades, downgrades, churn, and new customers affect your bottom line.
Example:
Imagine your SaaS tool has:
- 10 customers on a €100/month plan
- 5 customers on a €200/month plan
Your MRR would be:
(10 × €100) + (5 × €200) = €2,000
If a customer upgrades or churns, your MRR reflects that change immediately, giving you a real-time view of business health.