Understanding MRR
MRR is the most important metric for subscription businesses. It tells you your predictable monthly revenue.
MRR Definition
MRR = Sum of all active subscription revenue on a monthly basis
Example
Customer A: $100/month plan = $100 MRR
Customer B: $50/month plan = $50 MRR
Customer C: $500/year plan = $41.67 MRR (annualized)
Total MRR = $191.67
MRR Growth Formula
MRR Change = New MRR + Expansion MRR - Churn MRR
New MRR: Revenue from new customers
Expansion MRR: Revenue from upgrades
Churn MRR: Revenue lost from cancellations/downgrades
Example: Growing MRR
Month 1 MRR: $10,000
New customers: +$2,000
Upgrades: +$500
Cancellations: -$1,200
Downgrades: -$300
Month 2 MRR = $10,000 + $2,000 + $500 - $1,200 - $300 = $11,000
ARR (Annual Recurring Revenue)
ARR = MRR × 12
MRR $10,000 = ARR $120,000
Use ARR for annual reporting and contracts
Viewing MRR in BillPine
Go to Dashboard
Look at MRR Card (top right)
Shows:
Current MRR
MRR change this month
MRR trend (up/down arrow)
MRR Trends
View MRR history:
Go to Analytics → Revenue
See MRR by week or month
Identify trends (growing, declining, stable)
MRR Breakdown
See which plans/customers drive MRR:
MRR by plan (Starter, Professional, Enterprise)
MRR by region (MENA, EU, US)
MRR by cohort (when did customers join)
Top customers by MRR
Using MRR for Business Decisions
Pricing decisions: Is MRR growing? Should we raise prices?
Product roadmap: Which features drive highest MRR?
Sales targets: Need $50k MRR in Q2? Hire more sales reps.
Valuation: SaaS companies valued at 5-10x MRR
Fundraising: Investors want to see MRR growth (20%+ monthly)
MRR Benchmarks
Growth rate: 10% MoM (good), 20% MoM (great), 40%+ MoM (exceptional)
Churn: <5% monthly (excellent), 5-10% (good), >10% (problem)
CAC payback: <12 months (ideal)
Tips
Track MRR weekly — don't wait for month end
Focus on MRR growth, not customer count
$10k MRR is considered "product-market fit"
Calculate LTV = (Average MRR per customer) / (Monthly churn rate)
Compare MRR growth to CAC — if acquisition costs rise, MRR growth stalls