Plain English definition

What is MRR? Monthly Recurring Revenue Explained

The predictable, recurring revenue your business generates every month from subscriptions or repeat contracts.

MRR (Monthly Recurring Revenue) — in plain English

MRR is your guaranteed monthly income — the revenue you can count on without chasing new sales. If you have 100 customers each paying £50/month, your MRR is £5,000. Unlike one-off revenue, MRR is predictable, which makes planning and hiring decisions far easier.

Formula
MRR = Number of Active Subscribers × Average Revenue Per User (ARPU)

Why MRR (Monthly Recurring Revenue) matters for your business

MRR is the foundation metric for any subscription or recurring revenue business. It tells you how stable and predictable your revenue base is. Investors value MRR-based businesses far more highly than revenue-based ones because it reduces uncertainty. MRR growth rate shows whether the business is accelerating or slowing.

How AskBiz calculates MRR (Monthly Recurring Revenue) from your data

Upload your subscription or recurring revenue data. Ask "What is my MRR?" or "Show me MRR growth over the last 12 months." AskBiz calculates new MRR, churned MRR, expansion MRR, and net MRR movement.

1
Upload your data

Export a CSV or Excel file from your POS, accounting software, or spreadsheet and upload it to AskBiz.

2
Ask about MRR (Monthly Recurring Revenue)

Type your question in plain English. Try: "What is my mrr (monthly recurring revenue)?" or "What is MRR? Monthly Recurring Revenue Explained"

3
Get your answer instantly

AskBiz returns the calculation with a chart, KPI breakdown, and specific recommendations — in seconds.

Real-world example

A SaaS founder uploads 12 months of billing data. AskBiz calculates current MRR of £18,400, up from £9,200 a year ago — 100% growth. But it flags that monthly churn is running at 3.2%, meaning without new sales, MRR would decline by £590 every month.

Ask AskBiz about your MRR (Monthly Recurring Revenue)

Upload your CSV or Excel file and ask "What is MRR? Monthly Recurring Revenue Explained" — get the answer with a chart and recommendations in under 60 seconds.

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Frequently asked questions about MRR (Monthly Recurring Revenue)

What is the difference between MRR and ARR?

MRR is monthly recurring revenue. ARR is annual recurring revenue, calculated as MRR × 12. ARR is used for reporting and valuation. MRR is used for operational tracking. Both measure the same underlying thing at different time scales.

How does churn affect MRR?

Every customer who cancels reduces your MRR. If you add £2,000 in new MRR but lose £1,500 from churn, your net MRR growth is only £500. Tracking churn's impact on MRR is critical for understanding true growth.