Monthly recurring revenue (MRR) is the predictable revenue a business earns each month. It’s a key metric that helps teams track growth, forecast revenue, and assess business health.

MRR gives a clear snapshot of how much revenue you can expect every month, excluding one-time fees, trials, or variable payments.

Types of MRR:

• New MRR - Revenue from brand new customers
• Expansion MRR - Revenue from upgrades, cross-sells, or add-ons
• Churned MRR - Revenue lost from cancellations or downgrades
• Net new MRR - Total MRR gained minus churned MRR

Formula:

MRR = Total number of active customers × Average monthly subscription price

Example:

If you have 100 customers paying $50/month, your MRR is: 100 × $50 = $5,000