Skip to main content

​
What is MRR?

MRR is how much money you make every month from subscriptions. Only count money that repeats. If someone pays you $50 every month, that’s $50 MRR. If someone pays $600 for a whole year, divide by 12. That’s $50 MRR. Don’t count one-time payments like setup fees.

​
How to Calculate It

MRR = Amount paid for subscription / number of months in the plan
Examples:
  • $49/month plan → $49 MRR
  • $1,200/year plan → $1,200 ÷ 12 = $100 MRR
  • $300/quarter plan → $300 ÷ 3 = $100 MRR
Add up all your customers. That’s your total MRR. Count: subscriptions, recurring add-ons, per-seat charges. Don’t count: one-time fees.

​
Calculation Example

CustomerPlanBillingPriceMRR
Acme CorpGrowthMonthly$49/mo$49
Beta IncGrowthAnnual$441/yr$36.75
Gamma LLCGrowthMonthly$49/mo$49
Delta CoFree—$0$0
Total MRR = $49 + $36.75 + $49 + $0 = $134.75 Beta Inc pays $441/year. Divide by 12 = $36.75/month. Delta Co is free, so $0.

​
How MRR Changes

Your MRR goes up or down for five reasons:
TypeWhat happened
NewNew customer signed up
ExpansionExisting customer upgraded
ContractionExisting customer contracted
ChurnCustomer cancelled
ReactivationOld customer came back
Net New MRR = New + Expansion + Reactivation − Contraction − Churn Positive = growing. Negative = shrinking. Bigdelta tracks all five types automatically as activities.

​
FAQ

MRR only counts recurring income. Revenue counts everything — one-time fees, consulting, overages. MRR shows your predictable income.
ARR = MRR × 12. Use MRR for monthly tracking. Use ARR for annual planning.
It depends on your stage:
  • Under $100K MRR: 15–20% month-over-month
  • $100K–$1M MRR: 8–12% month-over-month
  • Over $1M MRR: 3–5% month-over-month