Monthly Recurring Revenue (MRR)

What is MRR?

Monthly recurring revenue, or MRR, refers to a business’ predictable revenue that it expects to receive each month.

To calculate monthly recurring revenue, multiply your total number of paying customers by the average revenue per customer.  For example, if you have 10 customers and they pay you $20 per month, your MRR would be $200.

You can use MRR to track all of your recurring revenue over time, in monthly increments. MRR is often a by-product of businesses that are paid for on a monthly basis or subscription businesses.

The importance of calculating MRR:

• It helps track the performance of your businesses
• It allows making sales forecasts 
• It’s a key metric for budget planning.