MRR
MRR is a recurring-revenue metric, calculated as Sum of normalized monthly recurring subscription value.
- Layer
- Metric
- Defined in
- Metric definitions
- Components
- 2
Authority
This definition follows Non-GAAP financial measure — SEC Regulation G — it is not a GAAP measure, so a registrant publishing it has to reconcile it to the nearest GAAP figure.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Formula
Sum of normalized monthly recurring subscription value
Excludes one-time fees, usage overage, services, and taxes.
A metric without its definition is a number people argue about in meetings. Every metric component in this system requires one — see the rules.
MRR, in use
Quoted from the 2 documents that use the word — what it does to an interface, in the spec's own sentence.
Opening MRR → new → expansion → contraction → churn → closing, as a waterfall.
The MRR bridge is the primary view — the waterfall from opening MRR through each movement to closing.
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
- MRR vs GAAP revenue under ASC 606MRR and ARR are operating metrics; revenue under ASC 606 is earned over time. How annual prepayments and churn split them, and how to reconcile the two.
- Audit-ready books before your Series AInvestors, lenders and auditors ask for the same things: accrual statements, reconciled accounts and support for every balance. How to be ready first.
- Can you vibe code your startup’s accounting?AI coding tools build a finance dashboard in an afternoon, but not a closed, reconciled, GAAP-basis ledger. Where the line is, and how to stay inside it.
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
Components that render the terms it depends on
Little in the catalog names this concept outright, but its definition is built out of others that are named. These render revenue.
Terms this one depends on
Also in Recurring revenue
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
Defined in Metric definitions. This page is generated from that document, so the two cannot disagree.