[GTM glossary](/glossary.md) Committed monthly recurring revenue (CMRR)

GTM Strategy & SaaS Metrics

# Committed monthly recurring revenue (CMRR)

Also known as: CMRR

In short

Committed monthly recurring revenue (CMRR) is a forward-looking version of MRR. It starts with current monthly recurring revenue, adds signed new business that has not started billing yet, and subtracts customers who have given notice to cancel.

CMRR reflects revenue you can reasonably expect from commitments already made, not forecasts of deals still in the pipeline.

## How CMRR is calculated

* **Start with:** Current MRR from active subscriptions.
* **Add:** Signed contracts and upgrades that are booked but not yet live.
* **Subtract:** Cancellations and downgrades already notified but not yet effective.

### Example

Say a company has 80,000 in MRR. It signed 10,000 in new deals starting next month and received notice of 4,000 in cancellations. CMRR is 86,000.

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## CMRR vs. MRR

MRR shows what is billing today. CMRR shows where billing is headed based on signed commitments. When onboarding takes weeks, CMRR gives a more current picture of growth than MRR alone.

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## Why GTM teams use it

* **Faster growth signal:** New deals show up as soon as they are signed, not after go-live.
* **Capacity planning:** Finance and customer success can plan onboarding around contracted volume.
* **Honest forecasting:** Only contracted items count, so it avoids optimism about open pipeline.

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## Common mistakes

* **Counting verbal commitments:** Only include signed contracts or equivalent binding commitments.
* **Forgetting known churn:** Skipping notified cancellations overstates CMRR.
* **Mixing in one-time fees:** Keep it limited to recurring amounts, normalized to a monthly figure.

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## Committed monthly recurring revenue (CMRR) FAQs

**What is committed monthly recurring revenue (CMRR)?**

CMRR is current monthly recurring revenue adjusted for contracted changes that have not yet taken effect. It adds signed new business waiting to go live and subtracts cancellations already notified, showing the recurring revenue base you are committed to.

**How do you calculate CMRR?**

Take current MRR, add the monthly value of signed contracts and upgrades not yet billing, then subtract the monthly value of cancellations and downgrades already notified. For example, 80,000 plus 10,000 minus 4,000 gives a CMRR of 86,000.

**What is the difference between CMRR and MRR?**

MRR measures recurring revenue currently being billed. CMRR adjusts that for signed but not-yet-live deals and known upcoming cancellations, so it leads MRR and better reflects the contracted direction of the business.

**Should open pipeline be included in CMRR?**

No. CMRR only includes commitments already made, such as signed contracts. Open opportunities that have not closed are uncertain and belong in a pipeline or forecast view, not in committed revenue.

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## More related phrases

* [Average revenue per account (ARPA)](/glossary/average-revenue-per-account.md)
* [Capped retention rate (CRR)](/glossary/capped-retention-rate.md)
* [Expansion ARR](/glossary/expansion-arr.md)

## Similar phrases

* [Annual recurring revenue (ARR)](/glossary/annual-recurring-revenue.md)  
Annual recurring revenue (ARR) is the yearly value of the subscription revenue a company expects to keep earning from its current customers.
* [Monthly recurring revenue (MRR)](/glossary/monthly-recurring-revenue.md)  
Monthly recurring revenue (MRR) is the predictable subscription revenue a business expects to earn each month, normalized across billing periods.
* [Bookings](/glossary/bookings.md)  
Bookings is the total value of customer contracts signed in a period, counted at signature regardless of when revenue is recognized or cash arrives.
* [Committed ARR (CARR)](/glossary/committed-arr.md)  
Committed ARR (CARR) is annual recurring revenue that includes signed contracts not yet live, giving a forward view of recurring revenue beyond what is already billing.
* [Revenue forecasting](/glossary/revenue-forecasting.md)  
Revenue forecasting predicts how much revenue a company will earn in a future period, using pipeline, historical conversion data, and recurring revenue to guide hiring and spending decisions.