What is MRR (monthly recurring revenue)?

Stripe defines MRR as the sum of the monthly-normalized value of all active and past-due subscriptions, excluding taxes, free plans and usage-based products, with trials excluded and canceled or unpaid subscriptions treated as churn. Its example is 100 subscribers on $100 a month and 50 on $600 a year, which gives $10,000 plus $2,500, so $12,500. Vendors differ on discounts, taxes and subscriptions in a billing problem, so compare numbers from one tool over time rather than across tools.

On the App Store and Google Play the price a customer pays can differ from the price you receive after the store's commission. Decide whether you report the customer price or your proceeds, and say which. MRR also moves when customers change plan, which is why charts split it into new, expansion, contraction and churned MRR.

RevenueDot takes the USD price of each paid subscription that has access at the end of the period and multiplies it by a factor from the product duration: 1 week ×4, 1 month ×1, 3 months ×⅓, 1 year ×1/12. A canceled subscription counts until it expires, one in a grace period counts, and a refund ends it. Trials, one-time purchases, ads, sandbox purchases, granted access and Family Sharing are excluded, and each subscription keeps the exchange rate of its purchase date.

Example

100 customers pay $10 a month and 50 customers pay $60 a year. MRR is 100 × $10 + 50 × ($60 ÷ 12), which is $1,000 + $250, or $1,250. ARR is $15,000.

Sources: Stripe Docs: Billing analytics definitions · RevenueCat Docs: Charts