Monthly recurring revenue is the predictable subscription revenue a business earns each month. You sum the monthly value of all active subscriptions. MRR is the operating heartbeat of a subscription business, tracked for growth, new additions, expansions, and losses.

MRR is where you see the truth before ARR smooths it over. Break it into new, expansion, contraction, and churned MRR, and you can see exactly what is driving or draining growth this month. Net new MRR, additions minus losses, is the single number that tells you if you are actually growing.

Example:

 You start the month at $100,000 MRR, add $15,000 new and $5,000 expansion, and lose $8,000 to churn. Net new MRR is $12,000, ending at $112,000.

How is MRR related to ARR?

 ARR is simply MRR multiplied by 12. MRR tracks month-to-month movement; ARR annualizes it for a headline figure.

What is net new MRR?

 Net new MRR is new plus expansion revenue minus contraction and churned revenue. It shows whether the business grew or shrank in a month.