MRR
Business & Finance abbreviation · Finance
| Stands for | Monthly recurring revenue |
|---|---|
| Categories | Business & Finance |
MRR stands for Monthly recurring revenue, a finance abbreviation.
Predictable subscription revenue a business expects to receive each month, normalized to remove one-off fees and the effect of annual prepayments. SaaS and subscription companies track new, expansion, contraction and churned MRR to understand growth.
Example: New MRR of $180,000 was offset by $40,000 of churned MRR, for net new MRR of $140,000.
Usage notes
MRR multiplied by twelve gives ARR. Early-stage companies tend to report MRR, while larger SaaS firms quote ARR. Subscription analytics tools such as ChartMogul and Baremetrics specialize in MRR reporting and cohort analysis.
Related abbreviations
More finance abbreviations
- LTM – Last twelve months
- M&A – Mergers and acquisitions
- MAC – Material adverse change
- MBO – Management buyout
- MIRR – Modified internal rate of return
- MOIC – Multiple on invested capital
- NewCo – New company
- NOPAT – Net operating profit after tax
- NPV – Net present value
- NTM – Next twelve months
- NWC – Net working capital
- OCF – Operating cash flow