> ## Documentation Index
> Fetch the complete documentation index at: https://getlago.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.
# MRR
> Your recurring run rate, and the movements that changed it.
What is my recurring run rate, and what moved it? MRR is what your customers' plans promise to pay per month.
**MRR is not what you invoiced.** It is built from plan prices, not from invoices. A usage-heavy customer can pay you five times their MRR. For invoiced revenue, read [Revenue streams](/docs/guide/analytics/revenue/revenue-streams).
## What's on this dashboard
Everything here is 💰 money excluding tax. The details table has two sections that behave differently.
| Chart | What it answers | Behaviour |
| ------------------------------ | --------------------------------------- | --------- |
| MRR overview | What moved my run rate, month by month? | Activity |
| MRR details, Summary section | Starting MRR, Change, Ending MRR | Balance |
| MRR details, Movements section | New, Expansion, Contraction, Churn | Activity |
Starting and Ending MRR are **balances**, like your bank account on a given date: each one is the whole run rate at that moment, not what the period added. Widen the date range and you get more history: the last Ending MRR is the run rate at the end of the range, so that is the figure to quote. The movements are **activity**, like a bank statement: each one covers the period it sits in. Change is the four movements combined, and once a month is complete it also equals Ending minus Starting MRR.
## What counts as one month of MRR
Every live subscription contributes its **subscription fee**, the recurring price set on the plan, converted to a monthly figure. Only that fee counts. [Fixed charges](/docs/guide/plans/charges/fixed-charges) are not part of MRR, even though they are billed every period, and neither are usage-based charges.
| Plan interval | Counts as |
| ------------- | -------------------- |
| Weekly | Plan price x 52 / 12 |
| Monthly | Plan price |
| Quarterly | Plan price / 3 |
| Semiannual | Plan price / 6 |
| Yearly | Plan price / 12 |
A plan at 1,200 per year is worth 100 of MRR. That same conversion decides whether a plan change is an upgrade or a downgrade.
| | Counted? | If not, where is it? |
| -------------------------------------------------------------- | -------- | ----------------------------------------------------------- |
| The plan price of every live subscription, on any interval | ✅ Yes | |
| The full plan price, even for a discounted customer | ✅ Yes | |
| Metered usage. MRR does not move when a customer consumes more | ❌ No | [Usage](/docs/guide/analytics/usage) |
| One-off charges, add-ons and commitment top-ups | ❌ No | [Revenue streams](/docs/guide/analytics/revenue/revenue-streams) |
| Coupons. MRR is measured before discounts | ❌ No | [Revenue streams](/docs/guide/analytics/revenue/revenue-streams) |
| Wallet top-ups | ❌ No | [Credit ledgers](/docs/guide/analytics/credit-ledgers) |
| Taxes | ❌ No | [Invoices](/docs/guide/analytics/invoices) |
| Partner accounts | ❌ No | [Revenue share](/docs/guide/revenue-share) |
## The four movements
Each one is dated on the day the subscription started or ended.
| Movement | What triggers it | How much counts |
| --------------- | -------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------- |
| **New** | A customer's first subscription in that currency | The full monthly amount, positive |
| **Expansion** | An upgrade, a second subscription alongside an existing one, or a customer coming back | An upgrade counts the **difference** only. A second subscription or a return counts the full amount |
| **Contraction** | A downgrade, or an ending where the customer keeps another live subscription | A downgrade counts the **difference** only. A partial ending counts the full amount, negative |
| **Churn** | An ending that leaves the customer with nothing in that currency | The full monthly amount, negative |
**An upgrade is never churn plus new.** Lago knows the new subscription replaced the old one, so a plan change produces one movement on the difference. Churn only fires when a customer's recurring revenue in that currency reaches zero.
## Worked example
A customer on 100 per month upgrades to 200 per month on 15 March, then leaves on 10 April with nothing else running.
| Month | Starting MRR | New | Expansion | Contraction | Churn | Change | Ending MRR |
| ----- | ------------ | --- | --------- | ----------- | ----- | ------ | ---------- |
| March | 100 | 0 | 100 | 0 | 0 | 100 | 200 |
| April | 200 | 0 | 0 | 0 | -200 | -200 | 0 |
Had they moved to a 1,200 per year plan instead, nothing would have moved: 100 a month against 100 a month.
## Filters
| Filter | What it does |
| -------------------- | ---------------------------------------------------------------------- |
| Date range | Sets the period. With nothing set, the report shows the last 12 months |
| Granularity | Sets the bar width: day, week or month |
| Breakdown | Cuts the report by Type, Currency, Customer or Plan |
| Currency | Keeps one billing currency |
| Country | Keeps customers in one country |
| Customers | Keeps one or more named customers |
| Customer type | Keeps companies or individuals |
| Plan code | Keeps one plan |
| Subscription ext. ID | Isolates a single subscription |
| Customer has tax ID | Keeps customers with, or without, a tax ID on file |
⚠️ Remove Currency from the Breakdown and dollars, euros and yen are added into one number. Filter to one currency before quoting a total.
## What's not included (for now)
* **Usage, one-offs and commitment top-ups.** None of them are recurring. See [Revenue streams](/docs/guide/analytics/revenue/revenue-streams).
* **Fixed charges.** MRR counts the plan's subscription fee only, so a fixed charge does not move it even though it is billed every period.
* **Discounts.** MRR shows the full plan price, so a customer on a 50 percent coupon still counts at 100 percent.
* **Partner accounts** and **taxes**.
## Common questions
It is not meant to. MRR is the plan price of live subscriptions, before discounts and before any usage. Invoiced revenue adds usage, one-offs and top-ups, and takes off coupons and credits. The closest comparison is the subscription fee line in [Revenue streams](/docs/guide/analytics/revenue/revenue-streams).
Because Ending MRR is a balance, not an amount earned. December's value is the year-end run rate. To measure a year's growth, add the twelve Change values instead.
Lago links the new subscription to the one it replaced, so only the difference is reported, as expansion or as contraction. A yearly plan can be cheaper than a monthly one once converted to a monthly figure.
As contraction, not churn. Churn only fires when the customer has nothing left running in that currency. Note that [Churn](/docs/guide/analytics/subscriptions/churn) counts the same event as a termination.
The month is not finished. Its movements only cover the days so far, and the numbers update once a day overnight, so a subscription created today shows tomorrow.