Monthly Recurring Revenue (MRR) is income that a business can count on receiving every single month – in other words, predictable revenue. It is arguably the most important metric for subscription businesses – and something that investors love to see. MRR can provide valuable insights into sales and cash flow dynamics. To calculate your monthly recurring revenue, simply multiply your total number of paying users by the average revenue per user (ARPU).
Monthly Recurring Revenue (MRR) formula:
the number of paying users x average revenue per user (ARPU).
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