Monthly recurring revenue
What is MRR (Monthly Recurring Revenue)?
Monthly recurring revenue (MRR) is a key metric used to track the total predictable revenue a business generates from recurring payments within a single calendar month. This includes income from subscriptions, memberships, or any repeat billing model. MRR is especially important for businesses with recurring revenue models, such as SaaS platforms or DTC subscription brands. It provides a clear picture of ongoing financial performance, making it easier to forecast future growth and monitor the health of the business. MRR is often tracked alongside other important metrics, including annual recurring revenue (ARR), customer lifetime value (LTV), and churn rate.
Why does MRR growth matter for subscription businesses?
For any business built on repeat purchasing, MRR represents reliability and scalability. Unlike one-off sales, recurring revenue creates a foundation of predictable income that can grow month by month. By increasing MRR steadily over time, businesses benefit from stronger cash flow, better forecasting, and more room to reinvest in growth. Tracking MRR also makes it easier to identify patterns in customer behaviour, pinpoint areas of friction, and improve retention.
MRR gives clarity on:
Which businesses should track MRR?
Any business with a recurring revenue model should track MRR. This includes both B2B operations (like SaaS providers) and B2C brands offering subscription boxes, paid memberships, or loyalty-driven services. Whether you’re charging monthly, quarterly or annually, understanding your recurring revenue patterns helps you plan smarter, optimise pricing, and make decisions with more confidence.
How can you increase MRR in your subscription business?
To grow MRR, focus on improving both the value and flexibility of your subscription offering. Strategies include:
By centring the customer’s needs and creating a convenient, rewarding experience, businesses not only reduce churn, they turn casual subscribers into loyal, long-term customers who drive recurring revenue growth.
