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GlossaryAcronyms & Performance MetricsMRR (Monthly Recurring Revenue)
Acronyms & Performance Metrics

MRR (Monthly Recurring Revenue)

The predictable revenue a subscription business expects to receive every month from active subscriptions, normalized to a monthly figure regardless of billing frequency.

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."
  • 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).