Monthly Recurring Revenue
Also: MRR
The predictable recurring subscription revenue a business earns each month.
Why it matters
MRR is the monthly heartbeat of a subscription business, granular enough to see changes quickly. Broken into new, expansion, contraction, and churned MRR, it shows exactly what is driving growth or decline. It is the operational counterpart to the higher-level ARR.
How it is calculated
MRR = sum of monthly recurring fees from all active subscriptions; ARR = MRR x 12
What good looks like
The components matter more than the total: healthy MRR growth comes from new and expansion outpacing contraction and churn. Watching the breakdown tells you whether growth is acquisition-led or retention-led.
Related terms
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