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Full Definition
Monthly Recurring Revenue (MRR) is the total monthly value of all active, recurring subscription contracts. MRR is the most commonly tracked revenue metric for SaaS companies, providing a monthly view of the business health. New MRR comes from newly acquired customers; Expansion MRR from upgrades and add-ons; Churned MRR from cancellations; Contraction MRR from downgrades. Net New MRR = New MRR + Expansion MRR - Churned MRR - Contraction MRR. MRR * 12 = ARR.
Related Service
Revenue Operations
DevCommX builds the RevOps foundation that eliminates revenue team silos — clean data, unified attribution, accurate forecasting, and a single source of truth for every revenue decision.
Related Terms
Understanding MRR (Monthly Recurring Revenue) is more powerful when combined with these related concepts:
- ARR (Annual Recurring Revenue)The annualized value of all active subscription contracts.
- NRR (Net Revenue Retention)The percentage of revenue retained from existing customers, including expansion, after accounting for churn and contraction.
- Churn RateThe percentage of customers or revenue lost in a given period through cancellations.
- Expansion RevenueAdditional revenue generated from existing customers through upsells, cross-sells, or seat expansion.
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