What is MRR?
MRR is monthly recurring revenue, the predictable income from active subscriptions normalised to a monthly figure, excluding one-off sales and other variable earnings.
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How MRR is calculated
MRR is the sum of every active subscription normalised to a monthly figure. Monthly plans count at their price; an annual plan is divided by 12 and counts one twelfth each month, including the eleven months when no money arrives. One-off purchases never count, however large, because the metric exists to measure the part of your income that repeats. 120 members on a $9 monthly plan plus 30 on a $90 annual plan is 1,080 + (30 x 7.50) = $1,305 MRR.
Gross or net, chosen once
Platform and payment fees come off before the cash lands, so decide whether your MRR is the price your members pay or the amount you bank, write it down, and never switch. On Gumroad direct sales carry a 10% fee plus $0.50 per transaction, checked 1 October 2026, which on a $9 monthly membership is $1.40 a month, or 15.6% of the price. A subscription platform with a flat monthly fee behaves differently: Kajabi lists its Basic plan at $179 per month, checked 1 October 2026, which is a fixed cost against MRR rather than a percentage of it, so the two models cross over at a volume you can calculate.
Reading it with churn
MRR on its own hides the thing that kills it. Net new MRR = new + expansion - contraction - churned, and a flat total can mean nothing is happening or that you are replacing everyone who leaves. A membership at $1,305 MRR losing 5% of members a month has to add roughly $65 of new MRR every month to stand still, which is eight new $9 members before any growth at all. Track it beside churn rate, and model both together in our creator revenue calculators before you set a price.
Where the number lives
Whichever platform takes the payment is the only honest source, because it knows about failed charges, refunds and cancellations mid-cycle that a spreadsheet does not. Teachable starts at $39 per month for Starter and Circle at $89 per month for Professional, both checked in October 2026, and both report recurring revenue separately from one-off sales. If you sell across more than one platform, pick one place to sum them and reconcile monthly. The digital product platforms category compares the fee models, and how to sell online courses covers the pricing decisions that set MRR in the first place.
Frequently asked questions
What counts toward MRR?
Active recurring subscriptions only, normalised to a monthly amount. Annual plans count at one twelfth per month. One-off product sales, setup fees, tips and affiliate income stay out of it, because MRR is a measure of predictable income rather than total revenue.
Does an annual plan count in MRR?
Yes, at one twelfth of its price each month for the twelve months it covers. A $90 annual membership adds $7.50 of MRR, not $90 in the month it was paid. Counting the full amount on the payment date produces a revenue spike that misrepresents the following eleven months.
Is MRR the same as revenue?
No. Revenue is everything that arrived in a period, including one-off sales and sponsorships. MRR is the recurring subset, normalised monthly, and it is usually the smaller number. A creator with $4,000 in a strong month and $1,305 MRR has $1,305 they can count on next month.