Finding customers and growing
MRR and ARR
MRR, short for monthly recurring revenue, is the subscription money you can expect to collect every month from your current customers.
Also called monthly recurring revenue, ARR, annual recurring revenue
It leaves out one-time charges and spreads annual plans across their months. ARR, short for annual recurring revenue, is MRR multiplied by twelve. Both are run rates, a snapshot of today's pace, not cash in the bank. Most other growth numbers, like churn, the share of customers or revenue you lose each month, are measured against them.
When this shows up
Example, not a real founder: you sell a few annual plans in your launch month and report the full amount as that month's revenue. The next month looks like a collapse. Spread across the year, your MRR barely moved.
What to do next
List every active subscription with its monthly value, splitting annual plans across their months. The total is your MRR today.
Go deeper
Flat for months. Should you pivot or keep pushing?
A read on whether people find, use, return to and pay for your product, or a note when there is too little to judge.
Read the guide