Definition
MRR (Monthly Recurring Revenue) is the recurring revenue you expect from active subscriptions in a month. It's the standard momentum metric for subscription businesses.
What to include
- Recurring subscription charges (normalized to monthly).
- Exclude one-time fees and services revenue from MRR.
- For annual plans, count monthly equivalent (annual price / 12).
MRR movement breakdown
- New MRR, Expansion MRR, Contraction MRR, Churned MRR.
- Track net new MRR to understand growth rate and efficiency.
- Cohort MRR helps separate price/upsell from retention effects.