MRR (monthly recurring revenue)
also known as monthly recurring revenue · recurring revenue
The predictable revenue an agency earns each month from retainers and recurring work. The foundation of stable agency finances.
For example, an agency with ten clients on retainers averaging $3,500 a month has $35,000 in MRR. That figure - not one-off project wins - is what tells the owner whether payroll and rent are comfortably covered before any new sales come in.
Why it matters to agencies: MRR turns a feast-or-famine project business into something you can plan, staff and grow with confidence. Lenders, buyers and partners value recurring revenue highly, so a strong, growing MRR makes the whole agency more stable and more valuable.
MRR = the sum of every client's monthly recurring fee
For annual contracts, divide the annual value by 12 to get its monthly contribution.
MRR calculator
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- Counting one-off project fees as recurring revenue.
- Tracking only gross MRR and missing churn and contraction.
- Celebrating new MRR while net new (new + expansion - churn) is flat.
What is MRR (monthly recurring revenue)?
The predictable revenue an agency earns each month from retainers and recurring work. The foundation of stable agency finances.
How do you calculate MRR?
Add up every client's monthly recurring fee; for annual deals, divide the annual value by 12 first.
What is the difference between MRR and ARR?
ARR is the annual figure - simply MRR multiplied by 12 - used for yearly contracts and headline growth numbers.
Do one-off project fees count toward MRR?
No - MRR is only the recurring portion. One-off projects are real revenue but are not predictable, so they are tracked separately.