## Definition of Monthly Recurring Revenue Monthly Recurring Revenue (MRR) is a critical [[product metric]] that measures the predictable, recurring [[revenue]] generated by a company's subscription-based products or services on a monthly basis. ## Monthly Recurring Revenue Formula & Calculation MRR is calculated by multiplying the number of active subscribers in a given month by the monthly subscription fee. > For example, if a company has 1,000 active subscribers in a month, and each subscriber pays $50 per month, then the MRR for that month would be $50,000 MRR is a crucial metric for product managers because it provides a clear picture of the company's revenue growth and stability. It helps product managers understand the impact of changes in pricing, packaging, and other product-related decisions on revenue. MRR also provides insights into customer and [[user retention]] and [[Churn Rate]], which are essential for long-term [[product growth]]. Product managers can use MRR to identify trends in customer behavior, such as the impact of new [[Product Features]] or changes in the competitive landscape.