BUSINESS SPEAK · MRR
MRR: Monthly recurring revenue
The predictable subscription income a business earns each month.
What it means
MRR is the money you can count on every month from active subscriptions or retainers. It is customers × monthly price. Annual plans are divided by 12; one-off sales are left out.
Where you’ll meet it
- Subscription businesses, software companies, gyms, agencies on retainer and membership clubs track MRR because it shows momentum better than total sales.
- Growing MRR means more customers or higher prices. Falling MRR usually means customers are leaving (churn).
Worked example
Scenario: A cleaning service has 120 clients paying 49 a month, plus 10 clients on a 480 yearly plan.
- Monthly clients: 120 × 49 = 5,880
- Yearly clients: 10 × 480 ÷ 12 = 400
- MRR: 5,880 + 400 = 6,280
Answer: MRR is 6,280 per month.