Funnel Conversion Rates vs MRR
What is the difference between Funnel Conversion Rates and MRR? Side-by-side definitions, formulas, and benchmarks for two of the most-watched SaaS metrics.
Definitions
What is Funnel Conversion Rates?
Funnel Conversion Rates measure how prospects move from one stage of the marketing and sales funnel to the next.
Full Funnel Conversion Rates definition →
What is MRR?
MRR is monthly recurring revenue, the normalized monthly subscription revenue base of a SaaS company.
Funnel Conversion Rates vs MRR at a Glance
| Funnel Conversion Rates | MRR | |
|---|---|---|
| Category | Formulas | Metrics |
| Formula | — | MRR = Paying Customers × ARPA |
| Benchmarks | target: 20–30%; target: 10–20%; target: 5–10%; target: 1–2% | — |
| Calculator | — | MRR calculator |
When Each Matters
Funnel Conversion Rates and MRR answer different questions. Funnel Conversion Rates measure how prospects move from one stage of the marketing and sales funnel to the next. MRR is monthly recurring revenue, the normalized monthly subscription revenue base of a SaaS company. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.