Monthly Recurring Revenue (MRR)
The predictable revenue a business expects to earn every month from active subscriptions.
Why it matters
MRR is the foundation of SaaS financial planning. It shows revenue momentum and helps forecast growth, making it essential for investors and operators alike.
Formula
MRR = Sum of all monthly subscription revenue
Include only recurring charges. Exclude one-time fees, professional services, and non-recurring add-ons. For annual contracts, divide by 12.
Calculator
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Monthly Recurring Revenue
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What's a good MRR?
Depends on stage
Seed: $10K-$50K, Series A: $100K-$500K, Series B+: $1M+