Quick answer
Use recurring subscription revenue normalized to monthly values, then split it into new, expansion, contraction, and churned MRR so decision-making stays clear.
Core MRR formula
Start with active subscription amounts and normalize annual plans to monthly equivalents. Exclude one-time charges to keep recurring revenue clean and comparable.
Break MRR into movement categories
Track new MRR, expansion MRR, contraction MRR, and churned MRR separately. This is how founders diagnose whether growth is driven by acquisition quality or retention strength.
Common Stripe data pitfalls
Watch for paused subscriptions, discounts, and currency mix. A robust MRR view should standardize these inputs before drawing growth conclusions.
Founder checklist
- - Normalize billing intervals to monthly values
- - Separate recurring from one-off revenue
- - Track net new MRR as a composition of gains and losses
- - Review plan-level contribution before pricing experiments