Glossary

MRR (Monthly Recurring Revenue)

MRR (Monthly Recurring Revenue) is the predictable monthly recurring revenue of a SaaS business, calculated by normalizing all subscriptions to their monthly value (an annual plan at $1,200 contributes $100/month to MRR).

Also known as

  • MRR
  • ARR
  • recurring revenue
  • Monthly Recurring Revenue

MRR breaks down into 4 movement categories: **new MRR** (new customers), **expansion MRR** (upsell, upgrade, additional seats), **contraction MRR** (downgrade), **churn MRR** (lost customers). The sum = **net new MRR** = (new + expansion) − (contraction + churn). This is the only indicator that shows whether a SaaS is truly growing: high new MRR masked by equivalent churn MRR = invisible stagnation.

ARR (Annual Recurring Revenue) = MRR × 12. This is the metric investors prefer because it smooths out monthly noise. 2026 benchmarks: a "good" B2B SaaS shows MoM growth of 8-10% in early-stage (<$1M ARR), 5-7% in growth-stage ($1-10M ARR), 3-5% in scale-up ($10-100M ARR). The T2D3 rule (Triple twice then Double three times over 5 years, from $1M to $100M ARR) remains the canonical benchmark for world-class SaaS (Battery Ventures, Bessemer).

In the getchatsocial.com product

getchatsocial.com itself tracks its MRR by tier (Solo / Pro / Agency) in its internal Analytics module; the module is not exposed to customers but drives product management decisions.

FAQ

  • What is the difference between MRR and ARR?

    MRR = monthly recurring revenue. ARR = MRR × 12. ARR is the preferred unit for investors (readable, annual). MRR is the operational unit for SaaS management (monthly movement).

  • What is net new MRR?

    Net new MRR = (new MRR + expansion MRR) − (contraction MRR + churn MRR). It is the only indicator that shows real growth. Strong new MRR erased by strong churn MRR = hidden stagnation.