MRR Definition

The Loomly Team

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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