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.