What is MRR?
Monthly Recurring Revenue (MRR) is one of the most important metrics for a subscription business. It represents your recurring revenue for your business.
How to calculate MRR
For monthly subscriptions, say $100/month, your MRR would be $100. If you have longer term subscriptions, such as an annual subscription, you will have to divide to get the monthly value. So a $1,200/year subscription represents $100 in MRR.
Say you have a customer that has subscribed to two different products. One for $100/month and the other for $200/month. The customer’s total MRR would be $300.
Average monthly revenue
You can also calculate your average monthly revenue per customer by taking your total MRR across all customers and dividing it by the number of customers you have.