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Back to Glossary

Monthly Recurring Revenue (MRR)

The predictable and recurring revenue generated by a business from its subscription-based products or services on a monthly basis. MRR provides a consistent measure of a company's revenue stream, offering insight into its financial health and growth over time. MRR is calculated by summing up all subscription revenue from customers each month, including new subscriptions, renewals, and any upsells or cross-sells. It excludes one-time payments and non-recurring charges.

Related Terms

Annual Contract Value (ACV)

Annual Contract Value (ACV) measures yearly revenue from a customer contract in subscription models. It helps businesses with financial planning, sales forecasting, and performance analysis.

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) quantifies predictable yearly revenue from subscriptions. It excludes one-time fees, helping businesses assess financial health, growth, and stability for strategic planning and benchmarking.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) estimates total revenue from a customer over their relationship. It guides acquisition and retention strategies, calculated as purchase value × frequency × customer lifespan.
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