Monthly Recurring Revenue (MRR)

What is Monthly Recurring Revenue (MRR)?

Probably one of the most, if not the most, important KPIs for a company selling subscriptions. This is because, opposite to traditional sales, getting one new customer means a certain amount of money your company will be earning every month - as long as the customer stays as a client.

It’s an important metric to measure because it shows the profitability of a company, as well as predicting the expected revenue for next month. Therefore, the goal is to keep this number as high as possible while, of course, maintaining the client month by month.

Apart from new users, this KPI also takes into account upgrades and downgrades in the current subscriptions, as well as churns; because all these metrics affect positively or negatively the monthly revenue. To know the expected revenue for the whole year, you can just multiply the MRR by 12.

You can choose to display this metric as the value for the current month; this is, showing the revenue you can expect by the end of the month. However, to have a better insight into the evolution of your business and identify the highs and lows, you can show the progress throughout the year.

Pre-built widgets to display Monthly Recurring Revenue (MRR)

month

MRR / ARR

year to date

Monthly Recurring Revenue (MRR)

month

Monthly Recurring Revenue (MRR)

(
    Sum(New Monthly MRR,MRR)
)

Supported integrations