What is MRR?

MRR is the heartbeat metric of subscription businesses.

Updated Oct 22, 2026 · 1 min read

Definition

MRR (monthly recurring revenue) is the total predictable revenue a subscription business earns each month from active subscriptions.

MRR = sum of monthly subscription fees from all active customers

Yearly plans count as one twelfth per month.

Related metrics

  • ARR — annual recurring revenue (often MRR × 12)
  • New MRR — from new customers
  • Expansion MRR — from upgrades
  • Churned MRR — lost from cancellations and downgrades
  • Net new MRR — new + expansion − churn

Why it matters

MRR shows the size and momentum of a subscription business. Investors, buyers and founders watch it closely.

Verified MRR

Self-reported revenue can be exaggerated. Services like TrustMRR verify revenue by connecting to the startup's payment provider.

MRR for lead generation

Revenue tells you a lot about a startup's needs and budget:

  • under $10K MRR — solo founders; time-saving services
  • $10K–$100K — small teams; growth and hiring
  • listed for sale — acquisition opportunities

Prospect Cheap's TrustMRR scraper lets you filter startups by MRR range. See TrustMRR lead generation.

Example

A startup has 120 customers on a $49 monthly plan and 10 on a $490 yearly plan. MRR = 120 × $49 + 10 × ($490 ÷ 12) ≈ $5,880 + $408 = about $6,290.

Key takeaways

  • MRR is predictable monthly subscription revenue.
  • Watch new, expansion and churned MRR.
  • Verified MRR makes targeting startups precise.

Frequently asked questions

No. MRR counts only recurring subscription revenue, not one-time payments.

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