Monthly Recurring Revenue (MRR) is the predictable income your business earns every month from ongoing customers. It's the number investors ask about first - and for good reason.
Why it matters
One-off sales are exciting but fragile; recurring revenue is boring and durable. MRR tells you what next month looks like before it arrives, which is the foundation of planning, hiring and reinvesting with confidence.
How to grow it
- Add new recurring customers.
- Expand what existing customers pay.
- Reduce churn - keeping a customer beats replacing one.
Merchant residuals are pure MRR: once an account is live, it contributes every month you keep it happy. That's why the model compounds.