Jan 6, 2026
Monthly Recurring Revenue
MRR
The predictable revenue a subscription business earns each month. Foundation of SaaS financial metrics.
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Formula:
Sum of Monthly Subscription Revenue
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Benchmarks
Track MRR growth rate monthly. 10%+ MoM is strong early stage. 3-5% is healthy for mature SaaS.
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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.
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