Monthly Recurring Revenue
Definition
The monthly value of all contractually committed recurring revenue from active customers at a point in time. Monthly recurring revenue is a forward-looking measure of contracted recurring revenue in the next month, not a measure of cash received or revenue recognised in the last month. Monthly recurring revenue must exclude one-time fees, professional services revenue, and non-recurring items.
Common Misapplication
The most common misapplication is including one-time implementation fees or non-recurring professional services revenue in the monthly recurring revenue figure. These revenues are not recurring and inflate the metric in the period of recognition, producing a misleading picture of the contracted recurring revenue base.
FFI Standard Reference
This term is defined and applied in Book 2, Section 2.2: The Unit Economics Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Monthly Recurring Revenue. https://ffistandard.org/glossary/monthly-recurring-revenue/. 2026.