SaaS Marketing
MRR (Monthly Recurring Revenue)
Quick definition
MRR is the predictable monthly revenue a SaaS business earns from active subscriptions — the most-tracked top-line SaaS metric.
MRR normalizes all subscription revenue to a monthly basis. Annual contracts divide by 12; multi-month plans normalize similarly.
Why MRR (Monthly Recurring Revenue) matters
MRR breaks into components: New MRR, Expansion MRR, Contraction MRR, and Churned MRR. Tracking each separately reveals exactly where growth is coming from — or leaking.
How MRR (Monthly Recurring Revenue) works in practice
Forecast cash flow, set growth targets, and pace burn against MRR rather than total revenue. ARR (Annual Recurring Revenue) is the same concept on an annual basis.