What is a Monthly Recurring Revenue (MRR)?
A Monthly Recurring Revenue (MRR) is a term within business. Companies using a subscription pricing model will get a Monthly Recurring Revenue if their customers pay the subscription fee on a monthly basis. For example, if you have 10 customers and the subscription fee is $5, the company will have an MRR of $50. The cash flow from January’s operations will be $50, and that amount will be the same for February if no customers churn or sign up.
Having an MRR is oftentimes beneficial for software products using the SaaS business model.
Software Licensing System Documentation