What is Monthly Recurring Revenue?
Predictable subscription revenue normalized to a month.
How to calculate it
Calculate Monthly Recurring Revenue as: Sum of monthly recurring subscription revenue. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
200 customers paying $100/month -> $20,000 MRR. Exclude one-time onboarding fees.
Example 2
250 customers paying an average of $120/month -> $30,000 MRR. Removing $4k of one-time setup fees keeps the recurring figure honest.
Why it matters
Monthly recurring revenue (MRR) is the predictable subscription revenue normalized to a month and is the foundation of SaaS forecasting and valuation. Its stability lets teams plan hiring, spending and growth with confidence. Including one-time fees in MRR overstates the recurring base and distorts every metric built on it.
Benchmark context
Track month-over-month growth; 10-15% MoM is strong in the early stages, slowing naturally as the base grows. Compare to your own trajectory.
Common pitfalls
Including one-time fees in MRR.
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