The predictable revenue a subscription business expects to receive every month from active subscriptions, normalized to a monthly figure regardless of billing frequency.
Why it matters
MRR is the core health metric for subscription businesses because it separates predictable, recurring revenue from one-time revenue, making growth (or decline) easier to track and forecast month over month.
In a sentence
"New MRR from upgrades offset the MRR we lost to churn, so net MRR growth stayed positive for the quarter."
Related terms
- Antonyms: Churn (the loss of recurring revenue, functioning as the opposing force to MRR growth).
- Often confused with: ARR (MRR is the monthly figure; ARR is simply MRR multiplied by 12 to express it as an annual figure).
- Synonyms: Recurring revenue (informally, though MRR specifically denotes the monthly figure).