Monthly Recurring Revenue (MRR) charts the change in your monthly recurring revenue over time.
TL;DR
Monthly Recurring Revenue (MRR) charts the change in MRR for all active and past due subscriptions over time. MRR is one of the most important SaaS metrics. Tracking and analyzing MRR is central to growing your business.
What insights can I gain from MRR?
Unlike other types of businesses, SaaS is all about the steady growth of predictable, monthly recurring subscription revenue. As such, MRR is arguably the most important SaaS metric.
Tracking and analyzing your MRR is central to understanding and growing your business. It allows you to see how you’ve performed up until now and — due to its predictable nature — helps you forecast where you’ll be next month, quarter, or year.
Once you’ve established your month-over-month baseline growth, set sales and expansion targets to meet total revenue goals for the next year. For example, grow MRR to $83,334 to reach $1 million in annual recurring revenue.
Chart Notes
- Only active and past due subscriptions contribute to this chart.
- Only subscription invoice line items contribute to this metric. One-time (non-recurring) line items do not.
- Discounts are deducted from MRR.
- ChartMogul only deducts refunds from MRR for Stripe. For all other supported billing systems, refunded transactions are not deducted from MRR. Read more about configuring refund handling.
- Your Transaction fee handling setting determines whether transaction fees are deducted from MRR.
- Subscriptions billed in foreign currencies are converted to your primary currency. Learn more.
Calculation
ChartMogul calculates Monthly Recurring Revenue as the sum of MRR for all active and past due subscriptions in the period using the following methods:
- For monthly plans, MRR is the amount paid each month for the subscription.
- For all other plans, ChartMogul calculates MRR using the invoice amount and the billing interval defined in the plan.
Chart Data
See Chart Data.
Next Steps
- Analyze MRR by movement type.
- Use Segmentation to analyze the MRR contributed by specific groups of customers.
- Set a goal for MRR and create a target to share progress with your whole team.
- Track this metric from your phone with the ChartMogul mobile app.
- See future changes to MRR with Committed Monthly Recurring Revenue (CMRR).