MRR (Monthly Recurring Revenue)
The predictable monthly revenue from active subscriptions. The indie-founder scoreboard metric.
MRR is the sum of your monthly subscription revenue, normalized to a monthly view. Annual plans get divided by 12; quarterly plans divided by 3. It excludes one-time payments, refunds, and usage-based charges (those get counted separately as expansion or usage revenue). MRR is the metric indie founders track obsessively because it directly answers the question "can I quit my job on this yet?" Common milestones: $1K MRR (proven), $10K MRR (livable in most cost-of-living contexts), $50K MRR (small team territory), $100K MRR (fundable).
Related terms
ARR (Annual Recurring Revenue)
MRR × 12. The number most B2B SaaS founders benchmark against.
Churn
The rate at which paying customers stop paying you. The silent killer of SaaS.
LTV (Lifetime Value)
The total revenue a customer generates before they churn. What you can spend to acquire them.
CAC (Customer Acquisition Cost)
The total cost of acquiring one paying customer. Marketing spend + sales cost, divided by new customers.