Monthly Recurring Revenue (MRR) is a metric used to track the amount of predictable revenue that a company can expect to receive on a regular basis from its subscription-based business model. It is calculated by multiplying the number of paying customers by the average revenue per customer per month.
For example, if a company has 100 customers paying an average of $50 per month, its MRR would be $5,000. MRR is an important metric for subscription-based businesses because it allows them to forecast future revenue and plan for growth.
It is also used to measure the effectiveness of sales and marketing efforts, as well as the overall health of the business.