MRR (monthly recurring revenue)
Predictable subscription revenue normalised to a monthly figure.
Last reviewed 12 September 2026
MRR excludes one-off fees, setup charges, and consulting. Mixing them in makes growth look better than it is and forecasts unreliable.
Break it into new, expansion, contraction, and churned MRR. The mix explains the direction far better than the total.
Formula
MRR = Sum of all normalised monthly subscription fees
Frequently asked
What is mrr (monthly recurring revenue)?+
Predictable subscription revenue normalised to a monthly figure. MRR excludes one-off fees, setup charges, and consulting. Mixing them in makes growth look better than it is and forecasts unreliable. Break it into new, expansion, contraction, and churned MRR. The mix explains the direction far better than the total.
How do you calculate mrr (monthly recurring revenue)?+
MRR = Sum of all normalised monthly subscription fees
Why does mrr (monthly recurring revenue) matter for founders?+
Break it into new, expansion, contraction, and churned MRR. The mix explains the direction far better than the total.
Related terms
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