Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is the predictable revenue a subscription business earns from its active subscriptions each month.
MRR is calculated by summing the monthly subscription value of all active customers; annual plans are normalized by dividing their yearly price by 12. Teams break it down into new MRR from fresh signups, expansion MRR from upgrades, and lost MRR from downgrades and cancellations, which together explain how the number moves month to month.
MRR gives subscription businesses a real-time pulse on revenue health. Because it updates monthly, it surfaces trends faster than annual figures and makes it easy to see whether growth from new and expanding customers is outpacing what is lost to churn.
Sustained MRR growth depends on keeping customers happy enough to stay and upgrade. Running an active feedback loop in Feedjolt, where customer requests visibly turn into shipped improvements, supports the expansion and retention that healthy MRR relies on.