MRR Explained: The SaaS Metric That Tells You If You're Growing or Guessing

Understand Monthly Recurring Revenue (MRR), track it properly, and use it to steer smarter SaaS growth.

MRR. Three letters that can strike joy—or mild panic—into the heart of any SaaS founder.

Short for Monthly Recurring Revenue, it’s the North Star of subscription-based businesses. The one metric to rule them all. The difference between “We’re on track!” and “We're still kind of winging it…”

But what is MRR, really? Why does it matter so much? And how can marketing actually move the needle?

Let’s break it down. No fluff. No dodgy metrics. Just straight-talking advice from a team who helps SaaS companies grow with clarity and confidence.

What is MRR, Really?

Monthly Recurring Revenue (MRR) is the predictable, consistent income a SaaS business expects to earn each month from subscriptions.

Not pipeline.

Not one-off deals.

Not “we’re hoping they renew.”

It’s what’s locked in. It’s what keeps the lights on and your valuation climbing.

MRR is made up of:

• New MRR – Revenue from new customers acquired this month
• Expansion MRR – Upsells, add-ons, upgrades from existing customers
• Churned MRR – Revenue lost from cancellations or downgrades
• Net New MRR = (New + Expansion) - Churn

Keep that last line tattooed on your brain—it’s the actual measure of whether you’re growing or treading water.

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Why MRR is The Metric SaaS Investors and Marketers Obsess Over

You’re not a Shopify store selling candles. In SaaS, growth is measured in retention and compounding value.

MRR helps you:

📊 Track real growth – Not just sales activity, but sustainable, bankable income.

📈 Forecast confidently – Helps teams plan cashflow, hiring, and campaigns with actual data.

🧪 Test strategies – Shows the impact of pricing changes, feature launches, and yes—marketing.

💸 Attract investment – VCs don’t want vibes. They want reliable revenue trajectories.

In short: if you're not monitoring MRR closely, you’re guessing. And no SaaS brand scales on guesswork.

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How SaaS Marketing Affects MRR (And Why It’s Often Overlooked)

Here’s where things get juicy.

Most founders see MRR as a finance or sales metric. But marketing has more influence over it than most people realise.

Here’s how a good SaaS marketing agency helps drive MRR:

✅ 1. High-Intent Lead Generation = Better MRR

Targeting the right ICPs with SEO, PPC and partner marketing means you attract people more likely to convert and stick around. Not just trial junkies.

✅ 2. Onboarding Support = Faster Time to Value

Your MRR doesn’t just need quantity. It needs stickiness. Campaigns that support user activation boost retention and reduce early churn.

✅ 3. Expansion Campaigns = More Revenue Per Account

Upsell flows, cross-sell emails, feature announcements—these aren’t just nice to have. They directly fuel Expansion MRR.

✅ 4. Churn Reduction = Revenue Retention

Value-led nurture sequences, personalised comms, customer education… all within marketing’s remit, and all reduce churn.

Great marketing isn’t just about acquisition. It’s about contributing to net MRR growth across the full customer lifecycle.

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The MRR Metrics SaaS Teams Should Actually Track

It’s easy to get lost in spreadsheets and dashboards. Here’s the shortlist of what matters:

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What’s a “Good” MRR for a SaaS Company?

Sorry to be that person, but—it depends.

• Pre-seed SaaS might aim for £5K–£20K MRR to hit investor targets
• Seed–Series A could push £50K–£150K MRR as the next milestone
• Post-Series A should be chasing >£200K+ MRR and sustainable unit economics

What matters most is momentum. Investors look at MRR growth rate, not just size.

So the real question isn’t “How much MRR is good?”

It’s “Is your MRR going up, and do you know why?”

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The Red Flags Hidden in MRR (And How to Spot Them)

MRR going up? Great. But what’s underneath the growth?

🚨 High churn hidden by aggressive acquisition

🚨 Heavy discounting masking poor retention

🚨 One large client inflating your numbers

🚨 Expansion MRR carrying the weight while core value crumbles

This is why you need more than one view of MRR. It’s also why a good SaaS marketing agency won’t just drive top-of-funnel traffic—they’ll help you build a full-funnel strategy that aligns with your most valuable metrics.

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Final Word: MRR is More Than Math. It's Momentum.

If you’re in SaaS, MRR isn’t just a finance number—it’s your heartbeat. It tells you whether you’re growing with control, or guessing with hope.

When tracked properly and tied to the right strategies, MRR gives marketing teams a clear mandate: generate sustainable, expanding, sticky growth.

Which, not coincidentally, is what we help our clients do.

Need a partner to help grow your MRR?

We’re a specialist SaaS marketing agency that works across the full funnel—from paid acquisition to retention strategies—to turn pipeline into predictable monthly revenue.

👉 Learn more about our SaaS services

👉 Let’s talk MRR

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