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  4. Mrr

MRR (Monthly Recurring Revenue)

Normalized monthly subscription revenue.

Usage

Core revenue metric for subscriptions. Smooths seasonality versus cash.

Benchmarks

Track MRR by segment/plan and new/expansion/contraction/churn components monthly.

Healthy trend: steady new + expansion, declining contraction/churn as PMF improves.

Worked example

Starter: 500×$20 = $10k; Pro: 120×$120 = $14.4k; Enterprise: 8×$2,000 = $16k → MRR $40.4k.

Common pitfalls

Mixing one‑time services; counting annual prepayments as monthly; not normalizing credits.

How to show in your deck

Traction slide: MRR bridge (new/expansion/contraction/churn) for the last 3–6 months.

Deck snippet

MRR $40.4k (+13% MoM); expansion outpaces churn.

Formulas

MRR
Sum of monthly subscription revenue across all active customers

FAQs

Related

ARRSeeARPUSeeChurnSee