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Activity
Growth

MRR

Also called: monthly recurring revenue

Definition

What MRR means

MRR, or monthly recurring revenue, is the predictable subscription income you expect to collect each and every month from your currently active customers, before any new signups or cancellations that month.

A founder filling out a directory's 'traction' field or preparing a quick investor update usually needs one clean MRR figure instead of listing every plan, discount, and customer separately by hand.

MRR is not the same as total monthly revenue if you also sell one-time services or products alongside a subscription — those one-time amounts should usually be counted separately from your recurring subscription income.

Calculate MRR by adding up the monthly value of every active subscription, including monthly-equivalent values for any customers on annual or multi-month plans.

When it matters

Why this matters for builders

Many directories and investors ask for MRR as a simple growth signal.

Watch out

Mistake builders make often

Founders sometimes fold one-time revenue like setup fees or consulting work into their MRR number, inflating it beyond what is actually recurring.

Next step

What to do now

Use the MRR Calculator to get a clean recurring number before you report it anywhere external.