MRR

Introduction to Monthly Recurring Revenue (MRR) Calculator

The Monthly Recurring Revenue (MRR) is a critical metric for subscription-based businesses. It represents the consistent revenue generated from subscriptions each month. This formula calculates MRR by dividing the monthly revenue by the churn rate. The churn rate is the percentage of customers who cancel their subscriptions each month.

Parameter usage:

• monthlyRevenue= total revenue earned in a month
• churnRate= percentage of customers who cancel their subscriptions each month

Example valid values:

• monthlyRevenue= $10,000
• churnRate= 5%

Output:

• MRR= monthly recurring revenue

Data validation

The monthlyRevenue should be greater than zero, and churnRate should be between 0 and 1 (inclusive).

Summary

This calculator is essential for businesses to understand the stability and growth of their recurring revenue streams.