MRR
Monthly Recurring Revenue—the predictable total revenue generated from all active subscriptions in a month.
In Depth
Monthly Recurring Revenue (MRR) is a normalized measure of a subscription business's predictable revenue stream. It is calculated by summing the monthly value of all active subscriptions. MRR is broken down into components: New MRR (from new customers), Expansion MRR (upgrades and add-ons from existing customers), Contraction MRR (downgrades from existing customers), Churned MRR (from lost customers), and Reactivation MRR (from returning customers). Net New MRR = New + Expansion + Reactivation - Contraction - Churned. MRR is the foundational metric for SaaS businesses, used to calculate ARR (Annual Recurring Revenue), track growth rates, forecast revenue, and evaluate company valuation.
How AI for Database Helps
AI for Database calculates MRR and its components from your billing data—ask "What is our MRR breakdown this month?" and get instant answers.
Related Terms
ARR
Annual Recurring Revenue—the yearly value of recurring subscription revenue, typically MRR multiplied by 12.
Churn Rate
The percentage of customers or subscribers who stop using a product or service during a given time period.
Customer Lifetime Value
The total revenue a business can expect from a single customer account over the entire duration of their relationship.
SaaS Metrics
A set of key performance indicators specific to subscription-based software businesses.
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