Monthly Recurring Revenue, ARR, and a 12-month projection from customers × price × growth.
MRR (Monthly Recurring Revenue) is the predictable revenue your subscription business generates every month: paying customers × average revenue per customer. It's THE headline metric for SaaS because it strips out one-time payments and noise - if MRR grows, the business grows.
ARR (Annual Recurring Revenue) is simply MRR × 12, used for annual-contract businesses and fundraising conversations.
Early-stage indie products typically aim for 5-10% month-over-month. Funded startups chase 15-20%. Compounding matters more than the starting point: $1k MRR growing 10%/mo passes $3.1k in a year; at 5%/mo it reaches only $1.8k.
Free idea teardown · Free founder tools · Compare · AI Cofounders