The predictable revenue a subscription business earns each month. Foundation of SaaS financial metrics.
Formula
Sum of Monthly Subscription Revenue
Benchmark range
Track MRR growth rate monthly. 10%+ MoM is strong early stage. 3-5% is healthy for mature SaaS.
Why it matters
MRR is the heartbeat of subscription businesses. Break into: New MRR (new customers), Expansion MRR (upgrades), Churned MRR (cancellations), Contraction MRR (downgrades). Net MRR = sum of all four.
