Monthly Recurring Revenue (MRR) Renewal Rate

Definition

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.

Example

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.

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