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MRR - Monthly Recurring Revenue
MRR - Monthly Recurring Revenue

Monthly Recurring Revenue is the income a company receives on a regular, monthly basis.

Kate Shevtsova avatar
Written by Kate Shevtsova
Updated over a week ago

MRR is a metric suited best for subscription-based business models. Together with metrics that track customer acquisition and churn, it gives a good forecast of expected future revenues.

Alias

Abbreviation

MRR

Unit

Currency (Euro/Dollar/YEN...)

The same metric can also be calculated on an annual basis (Annual Recurring Revenue). This can make sense, for example, when the minimum subscription period is one year.

Calculation

The Monthly Recurring Revenue is calculated by adding up all recurring revenue streams.

Σ recurring revenue

_______________

MRR

_______________

Example

A company gets €50 revenue each from 200 users and €100 from 20 premium users per month.

(50€ x 200) = 10,000€

+ (100€ x 20) = 2,000€

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12,000 €

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