Vareto Finance Glossary

Monthly Recurring Revenue (MRR) Renewal Rate


MRR Renewal Rate is a SaaS metric that measures customer renewal rates normalized over a month. To ensure consistency in tracking and easy trend monitoring, this metric tracks renewals due within a month.


MRR Renewal Rate is calculated as a percentage. The formula for calculating this metric is = (Renewed MRR / Renewable MRR) * 100

Why it matters

With the help of the MRR renewal rate, a company can effectively understand purchase patterns by identifying trends and further improving retention. This can, in turn, allow improved customer success outcomes and easier prediction of revenue improvement.