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.
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Related terms
ARR (Annual Recurring Revenue)
ARR is the annualized value of a SaaS company's recurring subscription revenue — MRR × 12.
Churn Rate
Churn rate is the percentage of customers (logo churn) or revenue (revenue churn) lost in a given period.
Net Revenue Retention
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a period, including expansion, contraction, and churn.
SaaS
SaaS (Software as a Service) is a software delivery model where applications are hosted by the vendor and accessed by customers over the internet, typically on a subscription basis.