MRR Definition
What is MRR?
MRR definition: MRR stands for Monthly Recurring Revenue; it is a system used by subscription-based businesses to calculate their reliable monthly income.
MRR can be used to determine:
- Annual income predictions
- Churn rates
- Lifetime value
- Growth
MRR is typically used by subscription businesses who operate on a month-to-month subscription basis, like many Saas companies.
It is calculated by combining the total value of monthly subscription payments that will definitely be paid in the following month.
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