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by Undo Capital
December 15, 2025
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What Is MRR (Monthly Recurring Revenue)?

MRR (Monthly Recurring Revenue) is a key financial metric that shows the predictable monthly income a business generates from subscriptions or recurring contracts.

MRR (Monthly Recurring Revenue) Meaning

The MRR meaning centres on consistency and growth visibility. To define MRR in practice, it represents the total value of active recurring customer payments in a single month, excluding one-off fees and irregular income. A clear MRR definition helps founders track momentum, forecast cash flow and measure the impact of new sales, churn and upgrades. Investors closely monitor MRR alongside ARR to assess scalability and revenue quality. MRR stands for reliable income that underpins sustainable business growth, especially in SaaS and subscription-based models.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.