The heartbeat metric of any subscription business. Enter your paying customers and average price to get your MRR and ARR — plus where you'll be in 12 months at your current growth rate.
MRR is your predictable monthly subscription revenue; ARR is simply MRR × 12. The reason SaaS founders obsess over it is compounding: steady monthly growth on a recurring base snowballs — 8% a month is roughly 2.5x in a year. This simple version assumes no churn; in reality, retention is half the battle, so track churn alongside MRR.
Monthly recurring revenue — the predictable subscription income you earn each month. It's the core metric for any subscription or SaaS business.
ARR (annual recurring revenue) is just MRR multiplied by 12. MRR is the monthly view; ARR the annual one.
No — it's a simple projection assuming you keep customers. Real growth depends on retention too, so track churn alongside MRR in a tool like Databox.
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