Glossary
What is monthly recurring revenue (MRR)?
Monthly recurring revenue, or MRR, is the monthly value of all active recurring subscriptions. Annual contracts are divided by 12. Tracking how MRR changes each month, split into new, expansion, contraction and churn, shows where growth comes from and where it leaks.
Published by Sellinger AI. Numbers and settings checked on 24 October 2026 against the fact register. Report an error.
What are the parts of MRR change?
| Part | Meaning | Example |
|---|---|---|
| Starting MRR | MRR at the start of the month | 20,000 |
| New | From new customers | +2,000 |
| Expansion | Upgrades and added seats | +800 |
| Contraction | Downgrades | -300 |
| Churn | Cancelled customers | -700 |
| Ending MRR | 20,000 + 2,000 + 800 minus 300 minus 700 | 21,800 |
Why split MRR this way?
A flat total hides problems. A business adding a lot of new MRR while losing almost as much to churn has a retention problem, not a sales problem. Splitting the movements shows which team should act: sales for new, customer success for churn and expansion.
How does outbound show up in MRR?
New MRR from customers won through outbound, usually with a lag of a few weeks to months after the first conversation. Expansion and churn are influenced by customer outreach, such as renewal check ins. See churn rate.
How Sellinger handles it
Sellinger does not calculate MRR. It supports the conversations behind two of its parts: new business through outbound agents, and churn and expansion through customer success campaigns. See the customer success rule pack.
Common questions
How do you count annual contracts in MRR?
Is MRR the same as monthly revenue?
What is net new MRR?
Sources and method
General subscription finance practice; the example is illustrative.
Related: Annual recurring revenue, Net revenue retention, Churn rate, Upselling and cross selling.
