Glossary

Monthly recurring revenue

Monthly recurring revenue is subscription revenue normalized to a monthly amount.

Plain-language meaning

Monthly recurring revenue, or MRR, helps subscription businesses track recurring revenue at a monthly cadence. It usually excludes one-time setup fees, non-recurring services and taxes.

Example

If 200 customers each pay 30 per month, MRR is 6,000. If annual contracts are normalized monthly, a 1,200 annual subscription contributes 100 MRR.

Limitations

MRR definitions vary. Discounts, trials, usage-based fees, refunds, upgrades, downgrades and foreign exchange can change how a company reports the number.

How this term affects your result

Monthly recurring revenue affects the result through the units, time period, rate, threshold or method used by the related calculator. Read it together with the page's formula and assumptions before comparing results across tools or sources.

What to check

  • Use the same unit system, currency and time period as the related calculator.
  • For regulated, health, tax, finance, safety or live-data topics, check the primary source named on the related page.
  • If the term is used as a threshold, rate or category boundary, confirm the exact definition before relying on the estimate.

FAQ

Is Monthly recurring revenue defined the same way everywhere?

Not always. Some terms are mathematical and stable, while others vary by country, institution, industry, product or data source.

Why link glossary terms to calculators?

Calculator users often need the term at the moment they interpret a result. Linking the definition to the calculator reduces ambiguity.