MRR

Definition

MRR (Monthly Recurring Revenue) is the total predictable revenue from active subscriptions in a given month, normalized to a monthly basis. It is the primary health metric for subscription apps. MRR grows through new subscriptions and upgrades, and shrinks through cancellations (churn) and downgrades.

MRR is calculated by multiplying the number of active subscribers by their monthly subscription price, with annual plans divided by 12. It excludes one-time purchases and ad revenue — it is purely recurring subscription income. Tracking MRR over time reveals growth rate, seasonality, and the impact of pricing changes.

Examples

• An app has 500 subscribers on a $10/month plan. MRR = $5,000. If 50 cancel and 70 new subscribers join, net MRR change is +$200.
• Annual plan subscribers contribute their annual fee divided by 12 to MRR each month, even though the cash was collected upfront.
• Tierux's flat pricing model means your MRR directly determines which plan you are on — and the percentage of MRR you pay for billing infrastructure falls as you grow, unlike revenue-share competitors.