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Glossary term

MRR (Monthly Recurring Revenue)

The monthly version of ARR; the standard recurring-revenue metric for early-stage and product-led SaaS.

MRR (Monthly Recurring Revenue) is the monthly equivalent of ARR, summing all recurring subscription revenue normalized to a monthly figure. It is the standard metric for early-stage and product-led SaaS, where month-to-month plans and rapid changes make a monthly cadence more informative than an annual one. MRR multiplied by twelve approximates ARR, though the two can diverge with annual prepay dynamics. See ARR and SaaSpocalypse 101.

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