MRR (Monthly Recurring Revenue)
Definition
Monthly recurring revenue, the predictable revenue over 30 days from subscriptions or recurring contracts. The main metric for SaaS businesses and service providers with maintenance contracts.
Detailed explanation
MRR turns a freelance business from monthly hunting into steering. Calculation: sum of active subscriptions x monthly amount. For a WordPress developer: 20 maintenance clients at 200 EUR per month = 4,000 EUR MRR = 48k EUR ARR (Annual Recurring Revenue). Derived indicators: Net MRR Growth (MRR gained + expansion minus churn), churn rate (percentage of MRR lost each month), expansion (clients who upgrade). A freelancer who reaches 30% of revenue in MRR shifts into a radically different way of working: predictable income, less stressful prospecting, focus on delivery quality.
Concrete example
Freelance WordPress developer, 3 years in business: 40% one-off builds (projects at 3 to 8k EUR, 8 to 10 per year), 45% monthly maintenance (25 clients x 180 to 600 EUR per month = 9,000 EUR MRR), 15% one-off upsells (SEO, performance, security package). Annual revenue 140k EUR, of which 108k EUR is recurring.
Related terms
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