Say it like this
- Our MRR is growing at 20% month-over-month.
- We need to focus on increasing MRR by reducing churn.
- The sales team beat our MRR target this quarter.
Use it at work
Reporting
- MRR grew 6% this month.
- We just passed $100K MRR.
Planning
- How can we grow MRR without more sales hires?
- Annual plans don't help MRR this month.
Questions
- Does this MRR number include discounts?
- What's MRR churn this quarter?
Don't say this
MRR is always a monthly figure. If you mean annual, use ARR instead.
Don't mix it up
| Term | What it is | Who writes or uses it | When |
|---|---|---|---|
| MRR | Monthly recurring revenue | Finance, founders | Monthly plans |
| ARR | Yearly recurring revenue | Finance, founders | Annual view |
Practice
Try it
4 quick exercises
1. You are discussing revenue metrics with your finance team. Which sounds most professional?
2. If we reduce churn by 2%, our _______ will increase by approximately $15k.
3. Which sentence uses MRR incorrectly?
4. Rewrite in natural tech English using MRR: We earn $80,000 every month from customers who pay us on a regular basis for our service.
Say it out loud
Phrase 1 of 3
"Our MRR is growing at 20% month-over-month."
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More about MRR
Real examples(3)
- in a financial review meeting
"Our MRR grew from $100k to $120k last month, which puts us on track to reach our annual target."
- in a board meeting
"We're concerned about MRR decline in the EMEA region; we need to investigate customer retention issues."
- in a standup
"The product team should prioritize features that reduce churn because every 1% improvement in retention translates to significant MRR gains."
More mistakes(2)
Handle with care. Do not confuse MRR with ARR (Annual Recurring Revenue). MRR is monthly; ARR is annual. Also, MRR is specific to recurring revenue from subscriptions, not one-time sales.
- ✕We sold a one-time license for $50k, so our MRR increased by $50k.✓We sold a one-time license for $50k, but this doesn't affect MRR since it's not recurring revenue.
MRR only includes predictable recurring revenue from subscriptions, not one-time sales.
- ✕Our MRR includes both subscription fees and advertising revenue.✓Our subscription MRR is $80k per month; we also have additional non-recurring advertising revenue.
MRR specifically refers to recurring subscription revenue, not variable or one-time income.
Other forms(3)
- MRR noun
"Our MRR reached $500k last month."
- MRR growth noun
"We achieved 10% MRR growth quarter-over-quarter."
- MRR churn noun
"The product failure caused significant MRR churn."
Often used with(5)
- MRR growth · Refers to the percentage or absolute increase in monthly recurring revenue
- MRR churn · The loss of recurring revenue due to customer cancellations or downgrades
- track MRR · To monitor and measure monthly recurring revenue regularly
- increase MRR · To boost monthly recurring revenue through new customers or upsells
- MRR target · The revenue goal set for monthly recurring revenue
Similar words(3)
- ARR (Annual Recurring Revenue) · Same concept but calculated for one year; ARR is MRR multiplied by 12
- recurring revenue · Broader term that includes all types of predictable, repeating income
- subscription revenue · Money earned from subscription customers; MRR is a specific way to measure it
Opposites(3)
- one-time revenue
- one-time sales
- non-recurring income
Questions(6)
- What is the full form of MRR?
- MRR stands for Monthly Recurring Revenue. Monthly Recurring Revenue (MRR) is the predictable amount of revenue a company expects to generate each month from subscription-based customers.
- What does MRR mean in business?
- MRR stands for Monthly Recurring Revenue. It is the predictable amount of revenue a company expects to earn each month from subscription-based customers. It is a standard metric used by SaaS companies, streaming services, and any business with a subscription model to measure financial health and growth.
- How do you calculate MRR?
- The basic formula is: MRR = Number of Active Subscribers × Average Revenue Per User (ARPU). For example, if you have 500 customers paying an average of $100 per month, your MRR is $50,000. For annual subscriptions, divide the annual fee by 12 to get the monthly equivalent.
- What is the difference between MRR and ARR?
- MRR is Monthly Recurring Revenue (per month), while ARR is Annual Recurring Revenue (per year). ARR is typically calculated by multiplying MRR by 12. Both metrics track the same recurring revenue, but ARR gives a larger annual perspective useful for long-term planning.
- Why is MRR important for tech companies?
- MRR shows predictable, stable income that helps companies forecast cash flow, plan budgets, hire staff, and evaluate growth. A high and growing MRR indicates a healthy business, while declining MRR signals customer churn or retention problems that need immediate attention.
- Does MRR include one-time sales or fees?
- No. MRR includes only recurring, predictable revenue from subscriptions or contracts. One-time sales, setup fees, or sporadic purchases are not counted in MRR because they do not represent reliable monthly income.
