Business Metrics

What is MRR?

Definition

Monthly Recurring Revenue — the predictable total revenue a subscription business expects to earn each month from all active subscriptions.

Understanding MRR

MRR is the heartbeat metric of subscription businesses. It represents the total monthly income from all subscribers, normalized to a monthly figure. For example, if you have 100 customers paying $10/month and 50 paying $200/year, your MRR would be $1,000 + $833.33 = $1,833.33.

MRR is tracked as New MRR (new customers), Expansion MRR (upgrades), Contraction MRR (downgrades), and Churned MRR (cancellations). For personal finance, your personal MRR is your total monthly subscription spending.

Related Terms

Explore More

Start Tracking Your Subscriptions

Join thousands of users who have taken control of their subscription spending. 100% free, no credit card required.

100% Free foreverNo credit card requiredSet up in 2 minutes
Sponsor