VC & PE Glossary

What Is MAU?

Updated

Definition

MAU (monthly active users) counts distinct users who engage with a product at least once in a calendar month—a standard traction metric for consumer and product-led businesses.

Useful for: Founders, Investors

MAU stands for monthly active users—the number of unique users who performed a defined active action in a given month.

How it works

Teams must define active consistently: logged in, completed core action, or opened app. Changing definitions inflates growth artificially.

MAU is often reported with:

  • DAU/MAU ratio — stickiness (daily actives ÷ monthly actives)
  • New vs returning MAU — growth quality
  • MAU by cohort — retention curves

Example: a social app with 2M MAU and 800K DAU has 40% DAU/MAU stickiness. A fintech app may track funded accounts as active rather than installs.

MAU differs from MRR-based metrics: large MAU with weak monetization signals ad or freemium models needing conversion work.

Why it matters

  • Founders: Report MAU with the activity definition footnoted. Boards compare MAU growth to CAC and infrastructure cost per user.
  • Investors: Vanity MAU without retention triggers skepticism. Pair with engagement depth and revenue per active user.

Common mistake

Counting installs or registered accounts as MAU. Inactive accounts inflate reach without proving product value.

See also DAU, MRR, retention, and monetization.

  • DAU — DAU (Daily Active Users) counts how many unique users engage with a product on a given day — a core traction metric for consumer apps and platforms.
  • MRR — MRR (monthly recurring revenue) is the normalized monthly value of active subscription contracts—excluding one-time fees—so SaaS and subscription businesses can track recurring revenue growth and churn in comparable units.

Common questions

Short answers for founders, LPs, and operators

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