Monthly Recurring Revenue is the predictable revenue a SaaS business earns each month. Learn how MRR decomposes in a KPI tree.
Monthly Recurring Revenue (MRR) is the total predictable revenue normalized to a monthly amount. MRR decomposes into: New MRR + Expansion MRR - Contraction MRR - Churned MRR. In a SaaS KPI tree, MRR (or its annual equivalent, ARR) is often the root metric, with each component representing a distinct growth or retention lever.