Skip to main content
Home

Contracted MRR

What's the difference between “committed” and “contracted” MRR?





For term-based subscription businesses, CMRR is the value of the Contracted MRR from the booking date through the subscription end date. It excludes revenues that are not recurring even if such revenues are on a revenue recognition schedule. Variable fees are not typically included.

For month-to-month businesses (no term agreement), Contracted MRR is the minimum contracted component of the service fee. For example, you pay $29.95 per month for a phone line. You pay $.02 per minute for each call. Contracted MRR includes the $29.95 and excludes all fees for calls.