Marketing Glossary
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Monthly Recurring Revenue (MRR)

What is Monthly Recurring Revenue (MRR)?

MRR is a metric used to measure the amount of predictable revenue a business can expect to receive each month from subscription-based services. It is calculated by multiplying the number of paying customers by the average revenue per user (ARPU) for a given month. MRR is a key metric for subscription-based businesses, as it provides insight into the health of the business and its ability to generate predictable revenue.

Why is MRR important?

MRR is an important metric for businesses because it provides a reliable and predictable source of income. It is a measure of the total amount of revenue that a business can expect to receive on a monthly basis from its subscription-based services. MRR is a key indicator of a company’s financial health and can be used to track the growth of a business over time. It is also a useful tool for forecasting future revenue and making strategic decisions.

How can I use MRR?

MRR is a metric used to measure the amount of revenue a business is generating on a monthly basis. It is typically used to measure the performance of a business over time and to compare it to other businesses in the same industry. MRR can be used to track the growth of a business, identify areas of improvement, and set goals for future growth. It can also be used to calculate customer lifetime value, measure customer churn, and track customer acquisition costs.

Related Terms

Return on Investment (ROI)

Customer Acquisition Cost (CAC)

Cost per Lead (CPL)

Conversion Path