# What is MRR MRR stands for _Monthly Recurring Revenue_. This stat is the amount of money generated by subscriptions. ### **The Math:** (Total Active Subscribers) x (Price of Subscription) = Total Monthly Recurring Revenue ### **Examples:** If you have 100 monthly subscribers paying $97/mo., your MRR would be $9,700/mo. If you have 100 annual subscribers paying $970/yr., your MRR would be $8,083.33/mo. (annual $97,000 / 12 months) ### **What It Means:** MRR is essentially the foundation of revenue that you generate on an average month. MRR is primarily used as a valuation metric for the health of subscription and software companies. MRR is not the same as Cashflow. Cashflow is the actual projected revenue, whereas MRR is the average monthly revenue.