Definition
The predictable revenue generated from active subscribers on a monthly basis. MRR is a key metric for assessing growth, financial health, and the impact of marketing or retention initiatives in subscription-based apps.
MRR = Sum of (Each Subscriber's Monthly Payment). For annual plans: Monthly Equivalent = Annual Price / 12. MRR Growth = New MRR + Expansion MRR - Churned MRR - Contraction MRR. Net MRR Growth Rate = Net New MRR / Starting MRR x 100.
Add up the monthly equivalent payment for every active subscriber. Monthly plans contribute their full price. Annual plans are divided by 12. Quarterly plans by 3. Example: 5,000 monthly at $9.99 = $49,950 + 2,000 annual at $79.99/12 = $13,332 + 500 quarterly at $24.99/3 = $4,165. Total MRR = $67,447.
Track these five: 1) New MRR (first-time subscribers), 2) Expansion MRR (upgrades and plan increases), 3) Contraction MRR (downgrades), 4) Churned MRR (cancellations and failed payments), 5) Reactivation MRR (returning subscribers). These components tell the story behind your top-line number and show where to focus.
Track both. Gross MRR is total subscription payments before platform fees — useful for tracking subscriber volume and pricing. Net MRR subtracts Apple/Google fees and gives a more accurate picture of actual revenue. For financial planning and LTV calculations, always use net MRR. For operational decisions like churn analysis, gross MRR works fine.
The number of unique users who engage with the app at least once in a 30-day period. MAU is a top-level engagement metric and often serves as the denominator in conversion rate or retention analysis.
A metric that measures how often users return to the app by comparing Daily Active Users (DAU) to Monthly Active Users (MAU). A higher ratio (closer to 1.0) indicates stronger user stickiness and habitual usage. The usage patterns of your users will change based on the category and type of app. For example, social media and gaming apps expect a much higher MAU/DAU ratio. Apps that only make sense to use once a week or a few times a month shouldn't measure themselves the same as a game.
The party legally responsible for processing payments, managing refunds, and handling tax compliance on behalf of the app. In most mobile apps, Apple or Google act as the merchant of record, while web-based apps often use Paddle, or similar providers.
A third-party tool - like Appsflyer, Branch, or Adjust - that attributes installs, measures campaign performance, and tracks in-app behavior across paid and organic channels. MMPs can be helpful for understanding CAC, LTV, and ROI in a privacy-compliant manner.
Describes apps or services that support user access and subscription syncing across multiple operating systems (e.g., iOS, Android, web). Multi-platform support improves user flexibility, increases perceived value, and helps reduce churn.
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