MRRTrackMRR, made simple.
Monthly recurring revenue measures subscriptions normalized to one month. Calculate yours.
$3,000
- Normalized ARR
- $36,000
Annual contracts are divided by twelve. Do not count the same customers in both groups.
Use recurring amounts, excluding one-time fees and taxes, with a consistent convention.
MRR, ARR and cash receipts: three different views.
100 customers paying $29 per month represent $2,900 MRR. A recurring annual contract of $1,200 adds $100 MRR, even when cash arrives in one payment. Normalized ARR is then $36,000. One-time setup fees are excluded. MRR measures neither profit nor bank balance.
Useful questions
How do I calculate MRR movement?
Starting MRR + new subscriptions + expansion + reactivation − contraction − cancellations. Keep consistent conventions for discounts, taxes and currencies.
Can I always divide annual revenue by twelve?
Only if the scope is recurring and comparable. Annual revenue may include services, variable usage or one-time sales.
What does MRR mean here?
Monthly Recurring Revenue. This page does not cover Master Resell Rights.