Definition
Monthly Recurring Revenue is the subscription revenue you can expect every month if nobody cancels or expands. One-time setup fees, services, and hardware do not belong in MRR. New, expansion, and churned MRR should be visible as a waterfall, not a single vanity number.
In the room
How the word shows up in a real conversation.
40 clinics on ₹2,000 / month is ₹80,000 MRR. A ₹50,000 implementation invoice is not MRR. If two clinics cancel (−₹4,000) and one upgrades (+₹1,000), net new MRR is what the board should see.
Formula
MRR = sum of monthly subscription fees from active customers
Common mistake
Stuffing professional services into MRR to make the graph rise. Investors will unwind it.
See also
Annual Recurring Revenue (ARR)
Subscription revenue run-rate for a year, usually MRR × 12 for monthly books.
Read definition →
Churn rate
Percentage of customers who stop using a service over a given period.
Read definition →
Net Revenue Retention (NRR)
How revenue from last year’s customers changed after expansion, contraction, and churn.
Read definition →
SaaS (Software as a Service)
Cloud-based software delivery model where applications are hosted and accessed online.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.