# Monthly recurring revenue

Monthly recurring revenue is the total predictable monthly income an MSP receives from active client contracts. It excludes one-off project fees and variable usage charges, and it is one of the main drivers of an MSP's valuation.

Monthly recurring revenue, usually shortened to MRR, is the income an MSP can count on receiving each month from contracted services. It is the single most watched number in a saleable MSP because buyers pay a higher multiple for stable, recurring income than for project revenue.

## Why it matters to MSPs

MRR determines how predictable the business is. High MRR growth with low churn makes forecasting easier, hiring safer and valuation higher. A declining or stagnant MRR is usually the first sign that client acquisition or expansion is broken.

MRR is calculated by adding up the monthly value of all active recurring contracts. Annual contracts are divided by twelve. One-off project fees and pass-through hardware are excluded because they are not repeatable.

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Source: https://mspagenda.com/glossary/monthly-recurring-revenue
Last updated: 2026-09-11