MRR, or Monthly Recurring Revenue, is a key metric used by subscription-based businesses to measure their predictable income. It represents the total revenue a company expects to receive every month from its active subscriptions. By focusing on MRR, businesses can better understand their financial health and growth potential, making it easier to plan for the future.
Calculating MRR involves summing up all the recurring revenue from subscriptions, excluding any one-time fees or variable charges. This helps companies track their performance over time, identify trends, and make informed decisions about pricing, marketing, and customer retention strategies.