← Glossary
Financial modeling
Monthly Recurring Revenue (MRR)
MRR is recurring revenue normalized to a monthly cadence: new business plus expansion, minus contraction and churn, from active subscriptions. Most teams get it by dividing ARR by twelve, which is only correct if the ARR feeding it is already reconciled to the subscription ledger.
If it isn’t, MRR doesn’t fix the problem; it just reports the same wrong number twelve times a year instead of once. See how rexfin computes SaaS metrics against reconciled actuals instead of a remembered definition.