Monthly recurring revenue

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Definition
Monthly recurring revenue (MRR) is the predictable revenue a business can expect each month from active subscriptions. MRR gives you a clear view of revenue trends and performance, making it a foundational metric in SaaS and subscription-based businesses.

Zenskar computes MRR based on the pricing, billing cadence, and active contracts set up for each customer. You can track MRR trends and breakdowns across time, products, or customers.

Formula

Net MRR = Starting revenue
        + New revenue
        + Expansion revenue
        − Contraction revenue
        − Churn revenue

Importance

MRR is a foundational metric in SaaS and subscription-based businesses, offering a clear view of revenue trends and performance. It allows businesses to predict monthly revenue from active subscriptions.

Visualizations

MRR breakdown chart

Description

The MRR breakdown chart tracks the monthly growth or decline of your recurring revenue. The chart uses a stacked bar format with a line to represent Net MRR at the end of each month.

Chart Components

Each bar in the chart represents a given month, segmented by revenue activity type. A line overlays the bars to show Net MRR at month-end.

Segment	Definition
Starting revenue	Revenue carried forward from the previous month.
New revenue	Revenue from new customer subscriptions started during the month.
Expansion revenue	Revenue added from plan upgrades or new usage-based charges.
Contraction revenue	Revenue lost from downgrades or reduced usage.
Churn revenue	Revenue lost from complete subscription cancellations.
Net revenue	Total recurring revenue after all changes; plotted as a purple trend line.

MRR breakdown table

This information is available in a tabular format below the chart.