---
title: "What Is Monthly Recurring Revenue (MRR)? Definition"
description: "Monthly recurring revenue (MRR) is the predictable subscription revenue a company earns each month. Learn how MRR is calculated and its parts."
canonical: https://www.onegtmlab.dev/glossary/monthly-recurring-revenue
---

# What Is Monthly Recurring Revenue (MRR)? Definition

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GTM Glossary

# Monthly Recurring Revenue (MRR)

Monthly recurring revenue (MRR) is the predictable revenue a company earns each month from active subscriptions, excluding one-time fees such as setup or services.

Also called: MRR

## Why it matters

MRR gives subscription businesses a monthly view of their revenue base, which makes trends visible faster than annual figures. Teams break it into parts: new MRR from new customers, expansion MRR from upgrades, contraction MRR from downgrades and churned MRR from cancellations. Net new MRR, the sum of these, shows whether the business grew in the month.

MRR is the monthly version of annual recurring revenue, and ARR is often MRR multiplied by 12. Annual contracts are usually divided by 12 to count toward MRR. Companies should decide clearly how they treat discounts, trials, usage-based fees and paused accounts, and apply the same rules every month.

## Example

At the start of a month a company has 100 customers paying $500 a month, an MRR of $50,000. During the month it adds 10 new customers at $500, five customers upgrade by $200 each and three cancel. New MRR is $5,000, expansion is $1,000 and churned MRR is $1,500, so MRR ends the month at $54,500.

## Related terms

-   [Annual Recurring Revenue (ARR)](/glossary/annual-recurring-revenue)
-   [Churn Rate](/glossary/churn-rate)
-   [Net Revenue Retention (NRR)](/glossary/net-revenue-retention)
-   [Customer Lifetime Value (CLV)](/glossary/customer-lifetime-value)
-   [B2B SaaS](/glossary/b2b-saas)

## Related service

[RevOps Clean CRM data, lead routing and reporting your team can trust.](/services/revops)

## Related playbook

-   [Outbound Sales Playbook From a signal or event list to the right buyers, one channel each, with every row explained.](/growth-playbooks/outbound-sales)

[← All GTM terms, A to Z](/glossary)

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