# MRR

> Monthly recurring revenue: the monthly value of every subscription that is paying now.

Source: https://datacenter.so/glossary/mrr
Also called: monthly recurring revenue.

MRR adds up the monthly value of every active subscription. Monthly plans count at their price, yearly plans at a twelfth, quarterly plans at a third, times the quantity. Stripe's definition counts `active` and `past_due` subscriptions and leaves out taxes, free plans and metered (usage-based) prices ([Stripe](https://docs.stripe.com/billing/subscriptions/analytics)). Trials add nothing until they pay.

Example: 100 customers at $50 a month and 30 at $480 a year make an MRR of $5,000 + $1,200 = $6,200.

MRR changes in four ways: new subscriptions, expansion (upgrades), contraction (downgrades) and [churn](https://datacenter.so/glossary/churn) (cancellations). MRR is a run rate, not cash: a yearly plan paid today adds its full price to revenue but a twelfth to MRR. See [MRR and SaaS attribution](https://datacenter.so/guides/saas-mrr-attribution).

## Related terms

- https://datacenter.so/glossary/churn
- https://datacenter.so/glossary/ltv
- https://datacenter.so/glossary/attribution