Monthly Recurring Revenue (MRR)

Date created: Mar 28, 2018  •   Last updated: Feb 25, 2022

What is Monthly Recurring Revenue?

Monthly Recurring Revenue (MRR) is the sum of all subscription revenue expressed as a monthly value. For most companies, MRR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions) and cancelled subscriptions. Though not a Generally Accepted Accounting Principle (GAAP) value, it's the Revenue equivalent used by every SaaS company. MRR is used interchangeably with ARR.

Monthly Recurring Revenue Formula

ƒ Sum(Recurring Revenue irrespective of billing interval expressed as a monthly value)

How to calculate Monthly Recurring Revenue

If 10 customers are paying \$150 per month, then MRR would be; MRR = \$1500 If 7 customers are paying \$200 per month, and 3 customers are paying \$100 per month, then MRR would be; MRR = \$1700

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How to visualize Monthly Recurring Revenue?

To visualize your Monthly Recurring Revenue, you can use a summary chart to display the value and optionally compare it to a previous time period.

Monthly Recurring Revenue visualization example

Monthly Recurring Revenue

\$165k

15.74

vs previous period

Summary Chart

Here's an example of how to visualize your current Monthly Recurring Revenue data in comparison to a previous time period or date range.

Monthly Recurring Revenue

\$164.85k

15.72

vs previous period

Summary Chart

Here's an example of how to visualize your current Monthly Recurring Revenue data in comparison to a previous time period or date range.