MRR is a measure of the total amount of recurring revenue generated from subscription-based services in a given month.
Monthly Recurring Revenue (MRR) is a key metric used in product management to measure the success of a product. It is the total amount of revenue that a company can expect to receive on a monthly basis from its customers. MRR is calculated by taking the total number of customers and multiplying it by the average revenue per customer. This metric helps product managers understand how much money their product is generating each month, and can be used to track growth over time. MRR can also be used to compare different products or services, as well as to identify areas for improvement. Additionally, MRR can be used to forecast future revenue and help inform pricing decisions.
1. A subscription-based software company charges customers $50 per month for access to their product. The company's MRR is $50,000 per month. 2. A SaaS company charges customers $100 per month for access to their product. The company's MRR is $200,000 per month. 3. An e-commerce store sells products on a subscription basis and charges customers $20 per month for access to their products. The company's MRR is $120,000 per month.