What are MRR and ARR?

MRR is monthly recurring revenue — what active subscriptions bring in each month; ARR is the same figure for a year, usually MRR × 12.

A yearly subscription counts as a twelfth of its price in MRR each month, so monthly and yearly plans can be added together. One-time purchases are not recurring and are left out.

MRR grows with new subscribers and upgrades, and shrinks with churn and downgrades. It is the headline number for subscription apps and micro SaaS alike.