MRR (Monthly Recurring Revenue)

Monthly Recurring Revenue (MRR) is the predictable, normalised revenue a SaaS business expects each month from its subscription customers. It is calculated by summing each active subscription's monthly fee, with annual contracts divided by 12. MRR is the single most important metric in subscription-software finance because it predicts ARR, growth rate, and runway without requiring the volatility of one-off bookings to interpret.

Last reviewed June 3, 2026

How MRR is calculated

Take every active paying customer, normalise their contract to a monthly figure (a $12,000 annual contract becomes $1,000 of MRR), and sum the result. Exclude one-off setup fees, professional services, and usage charges that fluctuate month to month. Discounts apply at the line level.

New MRR, expansion, contraction, churn

MRR is usually reported as a movement, not just a level. New MRR is from new customers. Expansion MRR is upsell or seat growth from existing customers. Contraction MRR is downgrades. Churn MRR is customers leaving entirely. Net new MRR is the sum: new + expansion minus contraction minus churn. The narrative inside a board deck lives in these four lines.

How INSIDEA builds MRR tracking inside HubSpot

HubSpot does not carry MRR natively. INSIDEA wires it as a custom object or custom property on the deal record, with calculated rollups at the account level and a deal pipeline that distinguishes new from expansion. Stripe (or your billing tool) feeds the underlying numbers via integration so the CRM and finance system agree.

Common questions about MRR (Monthly Recurring Revenue)

What is the difference between MRR and ARR?

ARR is MRR multiplied by 12. They describe the same revenue stream at different time scales. Smaller teams typically anchor on MRR; larger teams report ARR because the absolute numbers communicate faster to investors and board members.

Should usage-based revenue be in MRR?

Only the predictable, committed portion. If a contract guarantees a $5,000 monthly minimum plus usage above that, $5,000 belongs in MRR. The variable upside is reported separately as usage revenue or overage.

How do I track MRR in HubSpot?

HubSpot does not have a native MRR field. INSIDEA's standard pattern is a custom property on the deal record, with calculated rollups at the company level and Stripe integration feeding actuals. The deal pipeline is structured so new MRR and expansion MRR are separately countable.

What is a healthy MRR growth rate for B2B SaaS?

Net new MRR growth of 10 to 15 percent month over month is strong for early-stage; 3 to 5 percent month over month is healthy at $5M ARR and above. Net revenue retention above 110 percent is the more durable indicator because it isolates expansion from net-new acquisition.