MRR
Monthly Recurring Revenue (MRR) is the amount of money a company expects to generate from recurring customers.
MRR is a key metric for SaaS companies because it helps them understand their business model and how much money they can expect to make from their customers.
There is no single formula for calculating MRR. It can be calculated in different ways depending on the business model and the data available. Especially when dealing with hybrid and usage-based pricing models and multiple contract lengths like monthly and annual.
Simple calculation example:
- Customer A pays $120/year = $10 MRR
- Customer B pays $50/month = $50 MRR
- Customer C pays $30/quarter = $10 MRR
Total MRR = $70