Monthly Recurring Revenue is the normalized monthly value of all active subscriptions. Annual plans are divided by 12. One-time fees, overages, and services are excluded.
MRR is the canonical SaaS growth metric because it is predictable, comparable across pricing models, and directly drives runway and valuation math. Derived metrics include new MRR, expansion MRR, contraction MRR, churned MRR, and net new MRR.