MONTHLY RECURRING REVENUE
What MRR measures
MRR is the monthly value of your active subscriptions. It leaves out one-time revenue.
FORMULA
MRR formula
Multiply your active paying customers by the average monthly amount each customer pays.
EXAMPLE
100 customers paying $50 each month
Your MRR is $5,000. Your annual run rate is $60,000.
- Active customers
- 100
- MRR
- $5,000
- ARR
- $60,000
MONTHLY MOVEMENT
Track what changed from last month.
New customers and upgrades add MRR. Cancellations and downgrades reduce it.
Net new MRRNew + expansion − churn − contraction
Ending MRRStarting MRR + net new MRR
ARRMRR × 12
