What is MRR?
Monthly Recurring Revenue (MRR) is the most important metric for any subscription-based business. It tells you how much predictable, recurring revenue your business is generating each month from active subscriptions.
Unlike total revenue, MRR gives you a clear snapshot of your business’s health and growth potential over time.
How is MRR calculated?
GrowthOptix calculates MRR by normalizing the value of all active subscriptions based on their billing interval. Only subscriptions with at least one successful payment are included to ensure accuracy.
Formula:
MRR = Σ (Normalized Monthly Value of Subscriptions with Successful Payments)
Normalization rules:
Daily: (Daily Price) × 30.4
Weekly: (Weekly Price) × 4
Monthly: Monthly Price
Yearly: (Yearly Price) ÷ 12
This ensures that all subscriptions are measured on a comparable monthly scale.
Why MRR matters
MRR gives you insight into:
How much recurring revenue your business is making
How subscription upgrades, downgrades, and churn impact revenue
What to expect in future months based on growth trends
It's the foundation for calculating other key metrics like ARR, MRR Growth Rate, and Forecast.
How GrowthOptix calculates and displays MRR
MRR is updated in near real-time based on your PayPal and Stripe data (refreshed every 4 hours for PayPal & 30 minutes for Stripe)
Only subscriptions with successful payments are counted
View MRR across periods using the Home Dashboard and Forecast & Goals
Pro Tip
Keep an eye on sudden drops in MRR to spot churn risks or failed payments early. Use GrowthOptix cohorts to understand which customer groups are affecting your recurring revenue.
Want to track MRR in real-time?