Committed MRR (CMRR)
DEFINITION
Committed MRR (CMRR) is a forward-looking version of monthly recurring revenue that adjusts current MRR for contracted increases not yet started and for known cancellations and downgrades.
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Committed MRR, or CMRR, is a forward-looking version of monthly recurring revenue that adjusts current MRR for changes the business already knows are coming. It takes today's recurring revenue, adds contracted increases that have not yet started, and subtracts recurring revenue that is already known to be leaving through cancellations or downgrades. Where plain MRR describes recurring revenue as it stands right now, CMRR describes the recurring revenue base a company can reasonably expect once its signed commitments take effect. It counts only changes that are contractually committed or otherwise known, not speculative pipeline, which is what separates it from a sales forecast.
A subscription platform such as Recurly holds the plan, contract, and change data these adjustments draw on, so committed increases and known losses can be tracked against the live recurring base. In Recurly, committed increases correspond to pending subscription changes, and because MRR reporting is based on invoiced charges rather than a forecasted view, a business typically assembles CMRR from those pending change, term end date, and renewal fields rather than from one built-in CMRR report.
Why committed MRR matters for subscription businesses
CMRR gives leadership and investors a truer picture of the near-term revenue base than current MRR alone. A company might have a strong MRR today while carrying known churn that will pull the base down next quarter, or it might have signed expansions that current MRR does not yet reflect. CMRR surfaces both, so planning is based on where recurring revenue is heading rather than only where it currently sits.
It is especially useful in board and fundraising conversations, where the question is the durability of the revenue base. Because CMRR nets committed gains against known losses, it rewards a business for locking in expansion and penalizes it for pending churn, which aligns the metric with the outcomes that actually drive enterprise value.
How to calculate committed MRR
The core formula is:
CMRR = Current MRR + Committed new and expansion MRR - Known churn and contraction MRR
Written with the components separated:
CMRR = Current MRR + Contracted new MRR + Contracted expansion MRR - Expected churn MRR - Expected downgrade MRR
To calculate it:
Start with current MRR, the recurring revenue in effect today.
Add contracted new MRR from signed customers whose subscriptions have not yet started billing.
Add contracted expansion MRR from existing customers who have committed to upgrades or added seats not yet live.
Subtract expected churn MRR from customers who have given notice of cancellation.
Subtract expected downgrade MRR from customers who have committed to reducing their plan.
Include only committed or known changes. Unsigned pipeline and forecasted churn that no customer has confirmed do not belong in CMRR, they belong in a forecast.
Illustrative worked example
The figures below are hypothetical and used only to show the calculation.
Current MRR: $500,000
Contracted new MRR (signed, not yet started): +$40,000
Contracted expansion MRR (committed upgrades not yet live): +$20,000
Expected churn MRR (customers who gave cancellation notice): -$15,000
Expected downgrade MRR (committed plan reductions): -$5,000
Applying the formula: CMRR = 500,000 + 40,000 + 20,000 - 15,000 - 5,000 = 540,000
Committed MRR is $540,000, compared with current MRR of $500,000. The net of committed gains ($60,000) and known losses ($20,000) raises the expected recurring base by $40,000.
How to use committed MRR
CMRR is most useful as a planning and communication metric:
Track it alongside current MRR so the gap between them shows how much committed change is in flight.
Use it in board and investor updates to represent the near-term recurring base, not the pipeline.
Watch the known-churn component as an early warning, since it captures losses before they hit reported MRR.
Keep the inclusion rule strict, counting only committed changes, so the metric stays credible.
Benefits and examples
Reasons teams track CMRR include:
A forward view of the recurring base that reflects signed commitments.
Early visibility into known churn before it reduces reported revenue.
A cleaner basis for board and fundraising discussions about revenue durability.
Alignment of the metric with expansion and retention, the levers that build long-term value.
As an illustration, a company reporting flat MRR quarter over quarter might show rising CMRR because it has signed several expansions that begin next quarter, telling leadership the base is stronger than the current number suggests. This example is illustrative and not tied to any specific result.
Frequently asked questions
What is the difference between MRR and committed MRR? MRR is the recurring revenue in effect today. Committed MRR adjusts that figure for changes already known, adding contracted new and expansion revenue that has not started and subtracting revenue from customers who have committed to leaving or downgrading.
Is committed MRR the same as a revenue forecast? No. CMRR counts only committed or known changes, such as signed contracts and cancellation notices. A forecast includes unsigned pipeline and estimated churn, which CMRR deliberately excludes to stay grounded in commitments.
Why subtract known churn from committed MRR? Because a customer who has given notice represents recurring revenue that is already committed to leaving. Subtracting it gives a realistic view of the base the business will actually retain once those departures take effect.
When is committed MRR most useful? It is most valuable for near-term planning and for board or investor conversations, where the durability of the recurring base matters more than a single point-in-time MRR figure.
