MRR (Monthly Recurring Revenue)

How it works

MRR = ARR / 12. While ARR is what investors price on, MRR is what operators run on day-to-day. It's broken into New MRR, Expansion MRR, Churn MRR, and Contraction MRR — the four components that determine net new MRR each month.

Related terms

• ARR (Annual Recurring Revenue)
  ARR is the annualized value of a SaaS company's recurring subscription revenue at a point in time, excluding one-time fees.
• NRR (Net Revenue Retention)
  Net Revenue Retention measures the percentage of revenue retained from a cohort of customers over a year, including expansion and contraction but excluding new customers.