What are the components of MRR movement?

MRR movement consists of four components: New MRR (revenue from new customers), Expansion MRR (additional revenue from existing customers), Contraction MRR (reduced revenue from downgrades), and Churned MRR (lost revenue from cancellations). Net New MRR = New + Expansion - Contraction - Churned.

How do you convert MRR to ARR?

Simply multiply MRR by 12 to get ARR. For example, $100K MRR equals $1.2M ARR. However, be cautious with this calculation if you have significant annual or multi-year contracts — the monthly normalization should account for contract-specific terms and billing cycles.

Glossary

What is Monthly Recurring Revenue (MRR)?

A complete guide to understanding monthly recurring revenue (mrr) and why it matters for customer success teams.

Definition

“Monthly Recurring Revenue (MRR) is the predictable revenue a company expects to earn each month from active subscriptions. MRR is calculated by summing the monthly-normalized value of all recurring charges across the customer base.”
— AmplifyCS Glossary

Why It Matters

MRR provides a granular, month-by-month view of business momentum. Tracking MRR movements — new MRR, expansion MRR, contraction MRR, and churned MRR — reveals the full story of growth or decline. For customer success, MRR movements are the clearest scorecard of team impact.

How AmplifyCS Helps

AmplifyCS tracks MRR movements automatically and attributes them to CSM actions, health trends, and lifecycle stages. This connects day-to-day CS activities directly to revenue outcomes, making it easy to demonstrate ROI.

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Related Terms

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the annualized value of all active subscription contracts. It represents the predictable, recurring revenue a company expects to earn over the next 12 months, excluding one-time fees, professional services, and variable usage charges.

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Net Revenue Retention (NRR)

Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a given period, accounting for expansions, contractions, and churn. An NRR above 100% means existing customers are generating more revenue than they were at the start of the period.

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Expansion Revenue

Expansion revenue is the additional recurring revenue generated from existing customers through upsells (higher-tier plans), cross-sells (additional products), and increased usage or seat count. It is the primary driver of net revenue retention above 100%.

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Revenue Churn

Revenue churn measures the recurring revenue lost from existing customers during a specific period due to cancellations, downgrades, and contractions. It is typically expressed as a percentage of starting MRR or ARR. Net revenue churn also factors in expansion revenue.

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Frequently Asked Questions About Monthly Recurring Revenue (MRR)

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