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Business & Workplace Languageabbreviation · /ˌɛm.ɑːr.ˈɑːr/

MRR

In simple English

MRR is critical for subscription-based businesses because it shows how much stable, predictable income the company will receive each month. Unlike one-time sales, MRR comes from customers who pay recurring fees (weekly, monthly, or annually, but normalized to a monthly figure). In tech companies, finance teams, product managers, and executives track MRR closely to understand business health, plan hiring, and forecast growth. A growing MRR indicates customer satisfaction and business expansion, while declining MRR signals churn or customer issues that need attention. MRR is calculated by multiplying the number of active subscribers by the average monthly revenue per user (ARPU). For example, if you have 1,000 customers paying $50 per month, your MRR is $50,000. This metric helps companies answer critical questions: How much revenue are we guaranteed next month? Are we growing or shrinking? Can we afford to hire more people? Most tech companies report MRR growth as a primary business metric in pitch decks and investor presentations.

Understand how to calculate and track monthly recurring revenue for subscription businesses and SaaS companies.

At a glanceCEFR B2
Commonness4/5
Versatility4/5
FormalityCasualFormalNeutral
Spoken ↔ WrittenSpokenWrittenBoth
Directness ↔ DiplomaticDirectDiplomaticDirect
RegionUS and UK
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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.

Real examples

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 are 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."

Don't say this

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.

✕Our MRR is $1.2 million per year.
✓Our MRR is $100k per month, which equals $1.2 million ARR.— MRR is always a monthly figure. If you mean annual, use ARR instead.
✕We sold a one-time license for $50k, so our MRR increased by $50k.
✓We sold a one-time license for $50k, but this does not affect MRR since it is 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

noun

MRR

"Our MRR reached $500k last month."

noun

MRR growth

"We achieved 10% MRR growth quarter-over-quarter."

noun

MRR churn

"The product failure caused significant MRR churn."

Often used with

MRR growthRefers to the percentage or absolute increase in monthly recurring revenue
MRR churnThe loss of recurring revenue due to customer cancellations or downgrades
track MRRTo monitor and measure monthly recurring revenue regularly
increase MRRTo boost monthly recurring revenue through new customers or upsells
MRR targetThe revenue goal set for monthly recurring revenue

Similar words

ARR (Annual Recurring Revenue)Same concept but calculated for one year; ARR is MRR multiplied by 12
recurring revenueBroader term that includes all types of predictable, repeating income
subscription revenueMoney earned from subscription customers; MRR is a specific way to measure it

Opposites

one-time revenueone-time salesnon-recurring income

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Practice

Try it

4 quick exercises

Pick the most natural phrasing

1. You are discussing revenue metrics with your finance team. Which sounds most professional?

Complete the sentence

2. If we reduce churn by 2%, our _______ will increase by approximately $15k.

Spot the mistake

3. Which sentence uses MRR incorrectly?

Rewrite naturally

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.

Questions

Quick poll

Have you said "mrr" in a standup this week?

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