Monthly Recurring Revenue / Marketing Terms Monthly Recurring Revenue Monthly recurring revenue (MRR) is the predictable and recurring income a business expects to earn each month from subscriptions or contracts. It is a key performance indicator for subscription-based models, especially in B2B SaaS companies, membership organisations and nonprofits with recurring donation programs. MRR provides a clear view of financial stability, growth trends and long-term value. To calculate MRR, multiply the number of active customers by the average revenue per account (ARPA) for the month. For example, if you have 100 subscribers paying $50 each per month, your MRR is $5,000. MRR can be further broken down into new MRR (from new customers), expansion MRR (from upgrades or add-ons), and churned MRR (revenue lost from cancellations or downgrades). This breakdown helps teams track progress, identify risks and make data-driven decisions. MRR is useful for forecasting, goal setting and performance evaluation. For SaaS companies, a growing MRR signals strong product-market fit and supports investor confidence. For nonprofits, tracking recurring donation revenue can help stabilise cash flow and plan long-term campaigns. MRR also highlights the importance of customer retention, as losing even a small percentage of subscribers can significantly affect monthly revenue. Monitoring MRR trends helps teams refine their pricing models, improve onboarding and prioritise customer success.