Monthly Recurring Revenue (MRR) is a normalized measure of a business predictable revenue that it expects to earn each month. It is a metric usually used among subscription and SaaS companies. MRR is calculated by multiplying the average revenue per account by the total number of customers for that month. MRR is an essential metric for tracking the success of a business, making accurate sales projections, and planning for both short-term and long-term business growth. By analyzing monthly financial performance, businesses can anticipate the next month’s revenue and decide what changes they need to make in their sales efforts to increase revenue. MRR projections also help businesses identify the areas where they need to increase their spending and where they can cut back. MRR is considered the most important metric for financial growth, and it is used to examine team and sales rep performance. MRR is also used to calculate other important metrics, such as customer acquisition cost (CAC), lifetime value (LTV), and gross margin. By tracking MRR, businesses can identify growth trends, pinpoint problem areas, and make strategic decisions.