Monthly Recurring Revenue (MRR)
The predictable revenue your business earns every month from subscriptions, memberships, or ongoing plans.
MRR is the total amount you can count on collecting each month from customers who pay on a recurring basis — subscriptions, memberships, or retainers. If ten customers each pay you $50 a month, your MRR is $500. Annual plans are usually converted to a monthly figure so everything lines up on the same scale.
Because it's steady and repeatable, MRR is the clearest gauge of a subscription business's health. You watch it move: new sign-ups add to it, upgrades grow it, and cancellations or downgrades pull it down. The direction it trends month over month tells you whether the business is quietly compounding or slowly leaking.
Why it matters
MRR turns "how are we doing?" into a single number you can plan payroll, hiring, and growth around with confidence.