MRR stands for Monthly Recurring Revenue, which is a metric used to measure the predictable recurring income generated from customers on a monthly basis. It is an important metric for subscription-based businesses, as it allows them to predict future revenue, identify growth trends, pinpoint problem areas, and make strategic decisions. MRR is calculated by multiplying the average revenue per account by the total number of customers for that month. There are different types of MRR, including New MRR, Expansion MRR, Reactivation MRR, Churned MRR, and Contraction MRR. MRR is a crucial financial metric that helps businesses assess their present financial health and project future earnings based on active subscriptions. By tracking MRR, businesses can determine how they are progressing towards their revenue quota and set realistic future goals.