RevenueMetric 1 of 35
MRRMonthly Recurring Revenue
Normalised, predictable monthly revenue from active subscriptions.
Sum of all active subscriptions, normalised to a monthly amount. Annual plans are divided by 12. One-off charges, taxes, refunds, and trial subscriptions are excluded.
Formula
MRR = Σ (active subscription monthly value)Worked example
30 customers on a $99/mo plan + 10 on a $1,200/yr plan → (30 × 99) + (10 × 100) = $2,970 + $1,000 = $3,970 MRR.
Benchmark
Healthy growth (early SaaS)Top decile
+15% MoM
Median
+5–8% MoM
Stalling
<2% MoM
Why it matters
MRR is the heartbeat of a subscription business. It's stable enough to plan against (unlike one-off revenue) and granular enough to expose what's happening this month. Every operational decision — hiring, ad spend, runway — should be indexed to MRR, not GMV or invoiced revenue.
Common mistakes
- Counting one-off setup fees or implementation charges as MRR — they're not recurring.
- Including trials before the first paid invoice clears.
- Mixing gross MRR (before refunds) with net MRR — pick one and stay consistent.
- Treating annual plans as a single month's revenue in the month they're paid (creates fake spikes).
Tracked in FlowMRR
Dashboard → MRR KPI card + 12-month trend chart, computed straight from Stripe invoices.
