MRR (Monthly Recurring Revenue)

MRR (Monthly Recurring Revenue) is the total predictable subscription revenue your business earns in a month, with every plan normalized to a monthly amount. It's the single most-watched number for a subscription business because it turns a stream of individual payments into one trend you can forecast against.

How to calculate MRR

Add up the monthly-normalized amount of every active subscription. Divide annual plans by 12 and quarterly plans by 3.

For example, 100 customers on a $24/month plan plus 20 on a $240/year plan is (100 × $24) + (20 × $20) = $2,800 MRR.

Why MRR matters

• Forecasting — recurring revenue is predictable, so MRR is the base you project growth from.
• Health — comparing new MRR against churned MRR each month shows whether you're growing or leaking.
• Valuation — investors often value subscription businesses on a multiple of ARR, which is just MRR × 12.

MRR movements

Most teams split each month's change into new, expansion, contraction, and churned MRR. Tracking these MRR movements tells you why the number moved, not just that it did.

MRR and ChargeBell

ChargeBell shows the MRR impact of every subscription event in Slack. A new subscriber, an upgrade, or a cancellation each arrives with the exact change to your MRR, so the number stays live without opening a dashboard.