Revenue Metrics — SaaS glossary

Key revenue indicators every SaaS founder tracks - MRR, ARR, NRR, and more.

MRR (Monthly Recurring Revenue)

The predictable revenue your SaaS earns every month from active subscriptions.

ARR (Annual Recurring Revenue)

Your MRR multiplied by 12 - the annualized view of your subscription revenue.

Net Revenue Retention (NRR)

The percentage of recurring revenue retained from existing customers, including upgrades and downgrades.

ARPU (Average Revenue Per User)

The average monthly revenue generated per active user or account.

ACV (Annual Contract Value)

The average annualized revenue per customer contract, excluding one-time fees.

Expansion Revenue

Additional recurring revenue generated from existing customers through upgrades, add-ons, or seat growth.

SaaS Metrics

The key performance indicators (KPIs) that subscription businesses track to measure health and growth.

Related

• Full glossary
• MRR (Monthly Recurring Revenue)
• ARR (Annual Recurring Revenue)
• Net Revenue Retention (NRR)
• ARPU (Average Revenue Per User)
• ACV (Annual Contract Value)
• Expansion Revenue
• SaaS Metrics