Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the heartbeat metric of any subscription business. It normalizes all recurring revenue into a monthly figure, making it easy to track growth, forecast, and compare performance over time.

MRR is typically broken down into components: New MRR (from new customers), Expansion MRR (upgrades and add-ons from existing customers), Contraction MRR (downgrades), and Churned MRR (cancellations). Net New MRR—the sum of these components—tells you whether the business is growing or shrinking.

While MRR focuses on the revenue side, it is deeply connected to customer experience metrics. A spike in churn MRR often follows a decline in NPS or CSAT. Expansion MRR, on the other hand, tends to come from your happiest customers—your Promoters.

Tracking MRR alongside customer feedback metrics creates a powerful feedback loop: sentiment changes signal revenue risk or opportunity before the financial impact materializes, giving you time to act.