What is a Monthly Recurring Revenue(MRR)?
A Monthly Recurring Revenue (MRR) is a metric that is used to measure the revenue of a subscription-based business. It is calculated by taking the total revenue generated by the business and dividing it by the average number of subscribers. MRR is calculated by multiplying the number of customers by the average monthly subscription price.
A Monthly Recurring Revenue (MRR) is a model for charging customers on a monthly basis for the use of a product or service. The MRR model is popular in the SaaS industry, where customers are charged on a monthly basis for the use of software that they can access and use from any device.
The revenue can be calculated in two ways: either as an annualized amount known as Annual Recurring Revenue(ARR), or as a Monthly Recurring Revenue(MRR).