Monthly Recurring Revenue (MRR) measures the normalized monthly value of all active subscriptions. It makes it easy to forecast cash flow, understand growth, and highlight churn risk.
How to calculate:
- Sum the monthly price of every active subscription (or annual plans divided by 12)
- Subtract discounts and prorated adjustments
- Track expansions and contractions separately to understand what drives net growth
MRR helps operators evaluate launch experiments, pricing changes, and customer retention. Combine it with churn rate, customer acquisition cost, and lifetime value for a complete subscription health dashboard.
