Monthly Recurring Revenue (MRR)

This is the monthly predictable revenue a business expects receiving from its customers. Its equivalent is the Annual Recurring Revenue (ARR). The MRR metric is used to track month-by-month revenue changes: new MRR from new customers, churned MRR, contraction MRR, and expansion MRR all from existing customers.

Also, Net New MRR = New MRR (revenue from new subscribers to your product) + Expansion MRR (additional revenue from existing subscribers who have upgraded their feature usage) − Contraction MRR (a downgrade to a lower-tiered service by existing customers) − Churned MRR (revenue loss from customers who discontinued/cancelled their contract).

Generally, MRR = sum of all active subscription revenue normalized to a monthly amount.