Calculate your Monthly Recurring Revenue (MRR) below by providing your average MRR per customer and your total number of customers.
Monthly Recurring Revenue (MRR) is the amount of predictable revenue that a company expects to receive on a monthly basis. It is a key metric for SaaS companies and other subscription-based businesses.
MRR is calculated by multiplying the average revenue per customer by the total number of customers. The formula is: MRR = Average Revenue per Customer * Total Number of Customers
Annualized MRR or Annual Recurring Revenue (ARR) is the amount of predictable revenue that a company expects to receive on an annual basis. It is calculated by multiplying the MRR by 12. The formula is: ARR = MRR * 12
Some common metrics related to MRR include Net MRR Growth, Gross MRR Churn, and Net MRR Churn. These metrics help SaaS companies understand the health of their subscription business and make informed decisions about growth and retention strategies.
There are several types of MRR, including New MRR, Expansion MRR, Contraction MRR, and Churn MRR. These types of MRR help SaaS companies understand the sources of their revenue growth and identify areas for improvement.
Some strategies for increasing MRR include up-selling and cross-selling to existing customers, improving customer retention, and acquiring new customers through marketing and sales efforts. SaaS companies can also experiment with pricing and packaging to find the optimal balance between value and revenue.