All terms
Finance & Moneyadvanced

MRR

Monthly Recurring Revenue

Definition

The predictable, consistent revenue your business generates every month from subscriptions or retainers. MRR = Number of paying subscribers × Average revenue per subscriber.

Why it matters

MRR is the most important metric for subscription businesses because it makes revenue predictable. Investors value subscription businesses far higher than one-off purchase businesses.

Example

200 members paying £30/month = £6,000 MRR. If you add 20 new members and lose 5, MRR grows to £6,450. Track this weekly.

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