MRR (Monthly Recurring Revenue)

MRR (Monthly Recurring Revenue) is a key metric for companies with a subscription model. It represents the fixed revenue generated each month by recurring customers, providing a clear and predictable view of the company's financial health.

How does MRR work?

MRR is calculated by adding up the monthly subscription amounts paid by your customers. For example, if you have 100 customers each paying €50 per month for a service, your MRR will be €5,000. This figure is crucial for SaaS startups because it shows revenue stability and helps with growth planning.

Concrete example

Let's take the example of a SaaS platform charging €20 per month to its users. If the platform has 300 active users, the MRR will be €6,000. This means the company can expect to generate this amount every month as long as users remain subscribed.

Why is MRR important?

MRR is an essential metric for measuring the growth and financial stability of a subscription-based company. It allows you to forecast future revenue and assess the impact of growth strategies or customer losses (churn). With increasing MRR, the company can better plan investments and development.

Want to improve your MRR?

If you want to boost your MRR or learn more about managing your recurring revenue, feel free to contact us via the contact form on our website. We will help you maximize your revenue and ensure stable growth.