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Business term

MRR

Monthly Recurring Revenue

Definition

The normalised monthly value of active subscriptions, excluding one-off charges, used to track the recurring portion of a software business.

In more detail

Annual contracts are divided across twelve months so that a single large invoice does not distort a month. Usage-based charges are typically excluded or reported separately because they are not contractually recurring.

Glossary entries are general explanations, not advice. Where a term appears in a contract or policy, the definition in that document governs.