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Glossary

MRR

Also called monthly recurring revenue.

Monthly recurring revenue: the monthly value of every subscription that is paying now.

MRR adds up the monthly value of every active subscription. Monthly plans count at their price, yearly plans at a twelfth, quarterly plans at a third, times the quantity. Stripe's definition counts active and past_due subscriptions and leaves out taxes, free plans and metered (usage-based) prices (Stripe). Trials add nothing until they pay.

Example: 100 customers at $50 a month and 30 at $480 a year make an MRR of $5,000 + $1,200 = $6,200.

MRR changes in four ways: new subscriptions, expansion (upgrades), contraction (downgrades) and churn (cancellations). MRR is a run rate, not cash: a yearly plan paid today adds its full price to revenue but a twelfth to MRR. See MRR and SaaS attribution.

Related terms

MRR and SaaS attribution: which channels bring revenue that staysHow MRR is calculated, what moves it, how churn is measured, and how to tie subscription revenue to the campaigns that brought each customer.Attribution · 5 min read

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