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Glossary

Monthly Recurring Revenue

Also known as: MRR

Monthly Recurring Revenue (MRR) is the predictable revenue a subscription business expects to collect each month from its active subscriptions, normalized to a monthly figure — the core measure of the size and growth of recurring revenue.

MRR turns a mix of weekly, monthly, quarterly, and prepaid plans into one comparable monthly number so a business can track growth, model forecasts, and see the impact of new subscribers, upgrades, downgrades, and churn. Its annualized cousin is ARR (Annual Recurring Revenue).

Because MRR is recurring and relatively predictable, it's what makes subscription businesses valuable — the return doesn't have to be re-sold each month. Watching MRR alongside churn tells you whether new recurring revenue is outrunning what you're losing.

Curobi surfaces recurring revenue, active subscribers, upcoming and processed charges, failed-payment recovery, and cancellations, and because every charge settles through Shopify, subscription orders also flow into Shopify's own analytics and any reporting app you already use.

Related terms

  • Churn — Churn is the rate at which subscribers cancel or lapse over a given period — the share of recurring customers a business loses — and it is the single most important number in a subscription business because retained revenue compounds while churned revenue must be re-acquired.
  • Prepaid Subscription — A prepaid subscription is a recurring plan where the customer pays upfront for a fixed number of deliveries — such as a 3-month or 6-month term billed in one charge — instead of being billed each cycle as products ship.
  • Subscription Contract — A Subscription Contract is Shopify's native record of a recurring agreement between a store and a customer — it stores what is being sold, how often it renews, the price, and the vaulted payment method, and Shopify uses it to create each recurring charge.

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