MRR vs ROAS
MRR (Monthly Recurring Revenue) and ROAS (Return on Ad Spend) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: MRR refers to monthly recurring revenue, while ROAS refers to return on ad spend — they describe different things even when they show up in the same sentence.
MRR — Monthly Recurring Revenue
The predictable revenue a business earns each month from subscriptions or contracts.
ROAS — Return on Ad Spend
A marketing metric that measures revenue earned for every dollar spent on advertising.
When to use MRR
Reach for "MRR" when the conversation is specifically about monthly recurring revenue. The predictable revenue a business earns each month from subscriptions or contracts.
When to use ROAS
Reach for "ROAS" when the conversation is specifically about return on ad spend. A marketing metric that measures revenue earned for every dollar spent on advertising.
FAQs
What is the difference between MRR and ROAS?
MRR stands for Monthly Recurring Revenue — The predictable revenue a business earns each month from subscriptions or contracts. ROAS stands for Return on Ad Spend — A marketing metric that measures revenue earned for every dollar spent on advertising.
Are MRR and ROAS the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. MRR = Monthly Recurring Revenue. ROAS = Return on Ad Spend.
When should I use MRR vs ROAS?
Use MRR when you're specifically referring to monthly recurring revenue. Use ROAS when the topic is return on ad spend.