MRR: Monthly Recurring Revenue
The predictable monthly revenue a business earns from all active subscriptions.
Formula
Why it matters
MRR is the primary health metric for subscription businesses. It defines the baseline revenue floor and, when broken into new MRR, expansion MRR, and churned MRR, reveals which acquisition and retention levers need attention.
How to improve MRR
Increase new customer acquisition, expand revenue from existing customers (upsell / cross-sell), and reduce churn.
For early-stage SaaS: aim for 10–15% MRR growth month-over-month. At scale: 5–8% is strong.
Prooflytics tracks MRR automatically from your connected sources and flags it in your daily briefing when it moves significantly.
Start free trialFrequently asked questions
What are the components of MRR?
New MRR (from new customers), Expansion MRR (from upgrades), Contraction MRR (from downgrades), Churned MRR (from cancellations). Net New MRR = New + Expansion − Contraction − Churned.
What is the difference between MRR and ARR?
ARR (Annual Recurring Revenue) is MRR × 12. ARR is typically used for investor reporting and benchmarking; MRR is used for operational tracking of monthly trends.