What is CMRR?

CMRR is a snapshot of the monthly value of all your current and future subscriptions to date. It is aligned with the events providing information on future billing and is always one step ahead of MRR. CMRR includes:

• Current MRR
• New future subscriptions (from the signing date)
• Future churns (from the cancellation request date)

What is the difference between CMRR and MRR?

MRR and CMRR are two indicators related to recurring revenue, but with different perspectives. They can be compared to the view from a moving car: MRR is what you see in the rearview mirror (revenue already billed – a measure of the past) while CMRR is what you see through the windshield (committed revenue to come – a forward-looking view).

Note: Future MRR and CMRR are both forward-looking views, but with an important nuance: the way they are modeled. In short, CMRR reflects today the guaranteed monthly value of all current and future subscriptions, while future MRR models it at the date of their effective start.

How does Fincome calculate CMRR?

To calculate CMRR, Fincome relies on subscription and billing data and applies rules that ensure only future revenue that is already committed (secured) is retained. Concretely, CMRR is calculated as follows:

• The current MRR of all your active subscriptions at the analysis date (your current recurring revenue).
• • New future subscriptions whose contract is already signed, from the signing date (even if they start later). For example, a contract signed in June for a September start contributes to the CMRR from June.
• • Terminated subscriptions: any planned future termination results in the corresponding MRR being removed from the CMRR as soon as the cancellation is recorded (the revenue is no longer considered "committed" beyond the end date). In other words, a subscription that has given its notice of departure is no longer counted in committed revenue after the churn notification date.

CMRR calculation example: Suppose that on January 1st, your current MRR is €100,000. You have: a new signed contract that will add €20,000 of MRR from March 1st, and a €10,000 MRR subscription that has announced its termination effective February 28th.

Current MRR (on January 1st): €100,000

• New committed subscription: +€20,000 (from signing, even if starting in March)

– Upcoming churn (end of Feb.): –€10,000 (removed from committed revenue beyond Feb)

= CMRR on January 1st: €110,000

CARR: the annual projection of CMRR

CARR (Committed Annual Recurring Revenue) is quite simply the annual projection of CMRR. It is the same concept extended over 12 months: CARR = CMRR × 12. This metric expresses in annual value the recurring revenue already contractually secured.

Example: With a CMRR of €110,000, the CARR amounts to €1,320,000 (i.e. 110,000 × 12). This figure represents the annual recurring revenue already contractually committed for your company.

Updated on: 03/07/2026