How to Track Monthly Recurring Revenue in Your Pest Control Business

Why MRR Matters

You're working hard, but are you building a stable business? Monthly Recurring Revenue (MRR) is the metric that separates operators spinning their wheels from those building sustainable businesses.

What is MRR?

MRR is the predictable revenue you can expect each month from recurring customers - those on maintenance plans, quarterly services, or ongoing contracts.

Example:

• 10 monthly customers at $75/month = $750 MRR
• 20 quarterly customers at $100/quarter = $667 MRR
• Total MRR: $1,417/month

Why It's Your Most Important Metric

Predictable Income

Know what's coming in before the month starts. Plan expenses, growth, and personal income confidently.

Business Value

Businesses with recurring revenue sell for 3-5x MRR. One-time service businesses? Much less.

Growth Indicator

MRR going up? You're growing. Flat or declining? Time to adjust strategy.

Calculating Your MRR

Step 1: List All Recurring Customers

• Monthly plans
• Quarterly contracts (divide by 3)
• Annual contracts (divide by 12)

Step 2: Normalize to Monthly

• $100 quarterly service = $33.33 MRR
• $500 annual contract = $41.67 MRR

Step 3: Add It Up

Sum all normalized monthly values = Your MRR

MRR vs One-Time Revenue

One-Time Jobs:

• Unpredictable
• Requires constant new customer acquisition
• Hard to plan around
• Lower business value

Recurring Revenue:

• Predictable
• Compounds over time
• Easier to plan and scale
• Higher business value

Using MRR for Growth Decisions

Should You Hire?

Rule of thumb: Don't hire until MRR covers the employee cost + 30% buffer.

Can You Afford New Equipment?

If the equipment payment is less than 10% of MRR, probably yes.

What Services to Focus On?

Track MRR by service type. Focus on what generates the most recurring revenue.

Growing Your MRR

1. Convert One-Time to Recurring - Offer maintenance plans after initial service
2. Retain Existing Customers - Easier than finding new ones
3. Increase Plan Value - Add services or adjust pricing annually
4. Focus on High-MRR Services - Prioritize services that naturally recurPestPro CRM automatically

Tracking MRR in PestPro CRM

PestPro CRM helps you track your MRR in one simple dashboard.-
Start tracking your MRR for free

Sources & Industry References

The business valuation data cited in this article is derived from credible industry sources:

Business Valuation Multiples:

• Peak Business Valuation (2025). "Valuation Multiples for a Pest Control Business." Analysis showing pest control businesses with high recurring revenue (70%+) command valuation multiples of 5-6× SDE (Seller's Discretionary Earnings), compared to 3-4× SDE for businesses with primarily one-time service revenue.
• OffDeal (2025). "Practical Valuation Guide for a Pest Control Business." Case study comparison: Company A with 70%+ recurring revenue valued at $1.65-1.8M versus Company B with same revenue/profit but low recurring revenue valued at $1.05M—nearly 60% difference based on revenue stability.
• General SDE multiples for pest control industry range from 2.34× to 2.90× on average, with recurring revenue being the primary factor driving higher valuations.

Why Recurring Revenue Matters:

• Predictable cash flow enables better business planning and valuation certainty
• Recurring customers have significantly lower churn rates than one-time service customers
• Banks and buyers pay premium multiples for businesses with stable, predictable revenue streams
• Monthly Recurring Revenue (MRR) is the single most important metric for assessing business health and growth trajectory

Curious what your MRR could look like? Our Pricing Calculator estimates your recurring revenue based on the services you offer and what percentage of customers go on a recurring plan. See Your MRR Potential →

Note: Business valuations vary based on numerous factors including market conditions, regional dynamics, operational efficiency, customer concentration, and overall business health. The statistics provided represent industry averages from documented valuation analyses. Actual valuations should be determined by qualified business appraisers.