Monthly Recurring Revenue (MRR) is a key metric used by subscription-based businesses to measure predictable revenue generated each month. It represents the total amount of recurring revenue that a company expects to receive from its customers on a monthly basis, excluding any one-time fees or variable charges. MRR helps businesses assess their financial health and growth potential. MRR is calculated by multiplying the number of active subscribers by the average revenue per user (ARPU). This metric is crucial for companies like SaaS providers, as it allows them to forecast future revenue, make informed decisions, and attract investors by demonstrating stable income.