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What is monthly recurring revenue (MRR)?

month - ly re - cur - ring rev - e - nue
noun

Monthly recurring revenue (MRR) is a key measurement that allows businesses to grasp the amount of money customers are consistently contributing on a monthly basis for the subscription of their product or service. This metric provides valuable insights into the stability and predictability of a company's revenue stream, aiding in strategic decision-making and growth planning.
 

How does monthly recurring revenue (MRR) work?

Monthly Recurring Revenue (MRR) is a vital indicator that showcases the amount of income generated on a monthly basis by a subscription-based business. This metric provides a clear snapshot of the consistent revenue stream flowing in. To calculate MRR, you multiply the average monthly subscription value by the total number of customers, giving businesses a valuable gauge of their ongoing financial health and stability.