MRR (Monthly Recurring Revenue)

Predictable revenue that repeats every month from subscriptions or contracts.

Example

40 customers paying $50/mo is $2,000 MRR. A single $5,000 consulting project is NOT MRR — it does not repeat.

Mixing one-off revenue into MRR is one of the most common ways founders accidentally mislead investors, and themselves.

ARR (Annual Recurring Revenue) — MRR multiplied by 12 — the annualised run rate of your recurring revenue.
Churn — The rate at which customers or revenue leave over a period.
Revenue — The total money earned from customers before any costs are taken out.
Net revenue retention (NRR) — Revenue this period from last period's customers, including upgrades and downgrades, as a percentage.

The monthly reporting pack — Two pages, the same date every month, to investors and to yourself. What goes in it, what does not, and why the discipline outlives any single report. (11 min)
Business models — Subscription, transaction, marketplace, usage, licence. The model shapes your margin, your sales motion and how much money you need. (12 min)
MRR and ARR — Recurring revenue is the number investors care about most — and the one founders most often calculate wrongly. (10 min)
Building a financial model that is worth having — Three drivers, eighteen months, one page. The value is in the assumptions you can defend, not the projections you cannot. (14 min)