Cross-reference
This metric is defined in Core Metrics. Finance lists it here as a key outcome metric.
ARR / MRR: The total predictable revenue from active subscriptions, normalized to a monthly value.
Also known as: MRR
Formula
MRR = Sum of (Monthly subscription value for all active customers)MRR contribution = Annual Contract Value / 12What It Tells You
The current run rate of your recurring revenue engine.
Common Mistakes
- Including one-time fees (setup, professional services)
- Including usage/consumption revenue that isn't guaranteed
- Double-counting customers during plan changes
- Not normalizing annual contracts to monthly
- Treating MRR as an accounting figure