Current MRR adjusted for known future changes — signed expansions and contractions and confirmed churn not yet reflected in billing.
Committed MRR = current MRR + signed expansions − signed contractions − confirmed upcoming churn
Current MRR is £50,000. A customer has signed a £4,000/mo upgrade starting next month, and another worth £2,000/mo has given notice to cancel.
£50,000 + £4,000 − £2,000 = £52,000 committed MRR
Committed MRR (CMRR) is a forward-looking version of MRR. It starts from your current MRR and layers in changes you already know are coming but that have not yet hit the billing system: a customer who has signed an upgrade that takes effect next month, a trial that has converted, or an account that has given notice it will cancel.
The point is to capture certainty that plain MRR misses. Standard MRR is a snapshot of what is billing right now; CMRR adjusts that snapshot for the contractually committed future. It is a tighter forecast input than raw MRR because it includes signed but not-yet-active changes, while deliberately excluding speculative pipeline that has not closed.
CMRR sits between today and a full forecast. It is not a prediction of new sales — it only counts changes that are already committed — so it gives finance a high-confidence near-term view of where recurring revenue is heading without the noise of unsigned opportunities.
CMRR gives finance a high-confidence read on near-term recurring revenue. Because it folds in signed-but-not-yet-billed changes, it catches a known cancellation or expansion before it shows up in MRR — letting you forecast cash and plan headcount on what is actually contracted rather than what is currently billing.
CMRR has no universal target; it is judged against current MRR. A CMRR comfortably above MRR signals committed growth in the pipeline, while a CMRR below MRR is an early warning of contraction already locked in.
Plain MRR is a snapshot of what is billing today. Committed MRR adjusts that for signed-but-not-yet-active changes — upcoming upgrades, downgrades, and confirmed cancellations — giving a forward-looking figure.
No. CMRR counts only changes that are already committed or signed. Speculative or unsigned pipeline is excluded, which is what keeps it a high-confidence figure rather than a sales forecast.
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