Glossary entry
MRR
Also known as Monthly Recurring Revenue
The monthly equivalent of ARR — sum of subscription revenue normalized to a monthly basis. The operational sibling of ARR: ARR is the headline number, MRR is the number ops teams track week-to-week because changes show up faster. MRR movement = new MRR + expansion MRR − churn MRR − contraction MRR. The monthly cohort view reveals trends that ARR smooths over.
01Definition
TLDR
The monthly equivalent of ARR — sum of subscription revenue normalized to a monthly basis. The operational sibling of ARR: ARR is the headline number, MRR is the number ops teams track week-to-week because changes show up faster. MRR movement = new MRR + expansion MRR − churn MRR − contraction MRR. The monthly cohort view reveals trends that ARR smooths over.
02Why it matters
The metric that surfaces problems earliest. ARR is lagging by definition.
03Example
Worked example
$6M MRR composition: +$280K new, +$120K expansion, −$60K churn, −$30K contraction = +$310K net.
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