← View All Metrics
Read about our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Monthly Recurring Revenue (MRR)


What is Monthly Recurring Revenue?

Monthly Recurring Revenue (MRR) is the current monthly value of predictable and repeatable income from customers with active subscriptions, exclusive of one-time payments or fees.

How is Monthly Recurring Revenue (MRR) used?

MRR reflects the health of your core business and is the North Star metric for many companies. It's mainly used for growth tracking, forecasting, and valuation. MRR can also assist in gauging the impact of customer acquisition and churn.

How to calculate Monthly Recurring Revenue (MRR)

Total Number of Customers x Average MRR per Customer

To calculate MRR, multiply the total number of customers by the average MRR per customer.

Best Practices

Ensure MRR is calculated consistently. Include recurring charges but exclude one-time fees, discounts, and credits. Break down MRR into meaningful segments, such as by product, customer type, or region. This can reveal growth levers and insights into which areas are performing well and which need attention.

Common Misconceptions

A common mistake is confusing MRR with cash flow; MRR focuses solely on revenue due, not cash received. Another is neglecting the impact of downgrades or churn on MRR. It is not just a tally of positive revenue activities but a net figure showing the actual growth trajectory.




What are the main drivers of Monthly Recurring Revenue (MRR)?
  • Number of customers
  • Product pricing
  • Churn
  • Contraction
  • Expansion
How should I break down Monthly Recurring Revenue (MRR)?
  • Industry vertical
  • Geography
  • Company size
  • Product
  • Acquisition channel
  • Acquisition source/medium

Supported Integrations

Get this metric directly out of one of our supported integrations.

Related Metrics

Join other fast growing SaaS startups using Calliper.

Calliper is a modern business intelligence platform designed for SaaS Operators. Get automatic customer insights and alerts, and make data-informed decisions with ease.