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MRR (Monthly Recurring Revenue)

The monthly expression of recurring subscription revenue.

Sales

Definition

Monthly Recurring Revenue is the monthly run-rate of all active subscription contracts. MRR = ARR / 12. Sub-components include: New MRR (new customers), Expansion MRR (upgrades from existing), Contraction MRR (downgrades), Churned MRR (cancellations), and Reactivated MRR (returned customers).

Key points

  • MRR = sum of active monthly-equivalent subscriptions
  • Tracked as net new MRR = New + Expansion + Reactivated − Contraction − Churn
  • More sensitive than ARR for measuring near-term momentum
  • Committed MRR (cMRR) excludes discount and trial periods for underlying run-rate
Example

January: Start at $100k MRR. New sales add $10k, expansions +$2k, churn −$3k. End at $109k MRR. Net new MRR = $9k.

Related terms

ARR (Annual Recurring Revenue)Churn RateExpansion RevenueNRR (Net Revenue Retention)

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MRR (Monthly Recurring Revenue) Definition | KamoCRM Glossary | KamoCRM