SaaS metrics
MRR
Also called Monthly recurring revenue.
MRR, or monthly recurring revenue, is the money your subscriptions bring in each month.
Add up what every paying customer pays per month. Turn yearly plans into a monthly amount: $1,200 a year counts as $100 of MRR. Leave out one-time fees. Multiply MRR by 12 and you get ARR.
Most SaaS founders track it first, because it shows growth month by month. Each month, write down new MRR, MRR lost to churn, and MRR from upgrades. Compare it with customer acquisition cost to see if growth pays. Your pricing sets how fast it can grow.
Go deeper
- How to price a SaaS productSaaSPrice your SaaS product when you have almost no customers: set one price from what the problem costs your buyer, what 10 alternatives charge and what one customer costs you, ask about it in every chat, and raise it after 30 price talks if fewer than 1 in 5 say it is too expensive.
- How to reduce SaaS churnSaaSComing soon
- How to run a monthly marketing reviewComing soon
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