← GlossaryUnit economics
MRR
Also known as · Monthly Recurring Revenue
Total predictable monthly subscription revenue across all active customers.Monthly recurring revenue (MRR) is the sum of subscription revenue normalized to a monthly basis. New MRR, expansion MRR, contraction MRR, and churned MRR together describe a SaaS or retainer business's growth shape. Net New MRR = new + expansion − contraction − churn — the headline number for board reporting.
Related terms
Other unit economics terms.
CAC
Total marketing + sales spend divided by new customers acquired.
LTV
Total value a customer delivers over the duration of their relationship.
AOV
Total revenue divided by total orders for a period.
ARR
MRR multiplied by 12 — the annualized run rate of subscription revenue.
Churn Rate
Percentage of customers who cancel or fail to renew in a given period.
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