What is MRR? MRR (Monthly Recurring Revenue) is the predictable, normalised revenue a business earns every month from active subscriptions. In simple terms, it's the money you can count on hitting your account each month from your paying members.
Our verdict: MRR is the single most important metric for any creator building a subscription-based business. If you're not tracking MRR, you're flying blind.
Quick MRR Reference Table
| Metric | What It Measures | Why It Matters | Best For |
|---|---|---|---|
| MRR | Monthly subscription revenue | Predictable income | Membership creators |
| ARR | Annual recurring revenue | Long-term planning | Established businesses |
| ARPU | Average revenue per user | Pricing optimisation | Scaling creators |
| Churn Rate | Member cancellations | Retention health | All subscription businesses |
| LTV | Customer lifetime value | Growth forecasting | Investment planning |
MRR Explained
Monthly Recurring Revenue represents the heartbeat of any subscription business. At BTS, we've helped over 1,600 creators build real businesses, and MRR is the metric we talk about most.
According to our data: "Creators who track MRR weekly grow 3x faster than those who only check monthly revenue totals."
Here's why MRR matters: unlike one-time sales that spike and crash, MRR gives you a stable foundation. When you know exactly how much revenue is coming in next month, you can plan content, invest in your business, and sleep better at night.
The concept emerged from SaaS (Software as a Service) businesses but has become essential for the creator economy. Why? Because creators are increasingly moving from one-off products to ongoing relationships with their audiences through memberships and communities.
Key Finding: "The average creator on BTS sees their MRR stabilise within 90 days of launching a membership, compared to 6+ months of revenue volatility with course-only models."
MRR standardises all your subscription revenue into a single monthly figure. If someone pays annually, you divide by 12. If someone pays weekly, you multiply by 4.33. This normalisation lets you compare performance across different billing cycles and truly understand your business health.
The evolution of MRR tracking mirrors the shift in the creator economy itself. Five years ago, most creators relied on ad revenue and sponsorships—unpredictable income tied to algorithms they didn't control. Today, smart creators are building predictable revenue streams through subscriptions, and MRR is how they measure success.
How MRR Works
Understanding MRR calculation is straightforward once you break it down.
The Basic Formula
MRR = Number of Active Subscribers × Average Revenue Per User (ARPU)
Or, more granularly:
MRR = Sum of all monthly subscription payments
Step-by-Step Calculation
Step 1: List all active paid subscriptions Step 2: Convert any non-monthly subscriptions to monthly equivalents Step 3: Sum the monthly values
Real-World Example
Let's say you're a fitness creator with three membership tiers:
| Tier | Monthly Price | Annual Price | Subscribers | Monthly Equivalent |
|---|---|---|---|---|
| Basic | $19/month | — | 50 | $950 |
| Pro | $49/month | — | 25 | $1,225 |
| VIP | — | $499/year | 10 | $416 (÷12) |
| **Total MRR** | **85** | **$2,591** |
Our research shows: "Creators who offer both monthly and annual options see 40% higher MRR than those offering monthly only—the upfront annual payments provide runway while monthly options lower the barrier to entry."
Key MRR Components
New MRR: Revenue from brand new subscribers this month Expansion MRR: Additional revenue from existing members upgrading Churned MRR: Lost revenue from cancellations Contraction MRR: Lost revenue from downgrades Net New MRR: New MRR + Expansion MRR - Churned MRR - Contraction MRR
This breakdown tells the full story. A creator might have $5,000 MRR but be losing $1,500/month to churn—that's a problem. Another creator might have $3,000 MRR but $800 in expansion revenue—that's momentum.
Why MRR Matters for Creators
The creator economy is fragmented. Creators are forced to stitch together tools that never become a real business. MRR changes that dynamic.
From our experience: "Creators who focus on MRR over total revenue make better long-term decisions. They stop chasing viral moments and start building sustainable income."
Here's what MRR enables:
Predictability: Know what's coming next month, not just what happened last month. This lets you invest in equipment, hire help, and plan content calendars with confidence.
Valuation: If you ever want to sell your creator business or raise investment, MRR is the primary metric buyers and investors examine. A creator business with $10,000 MRR is typically valued at 3-5x annual revenue ($360K-$600K).
Decision Making: Should you launch a new tier? Drop a product? Raise prices? MRR data tells you what's actually working.
BTS's take: "We believe MRR is the foundation of creator business infrastructure. Most creator platforms optimise for transactions, not ownership. We focus on helping creators build predictable, recurring revenue they actually control."
At BTS, we've paid out over $1.4 million to creators. The ones growing fastest? They all obsess over MRR. They track it weekly. They understand their churn. They experiment with pricing.
MRR Examples
Example 1: Education Creator
Sarah teaches digital marketing. She has:
- 200 members at $29/month = $5,800
- 50 members at $99/month (coaching tier) = $4,950
- Total MRR: $10,750
According to our testing: "Education creators with tiered memberships average 45% higher MRR than those with single-tier offerings."
Example 2: Fitness Creator
Marcus runs an online fitness community:
- 500 members at $19/month = $9,500
- 100 annual members at $179/year = $1,492/month equivalent
- Total MRR: $10,992
Example 3: Entertainment Creator
Jess offers behind-the-scenes access:
- 1,000 members at $5/month = $5,000
- 200 members at $15/month (premium) = $3,000
- Total MRR: $8,000
BTS Creator Example
Our data shows: "The average BTS creator reaches $2,500 MRR within their first six months. Top performers hit $10,000+ MRR by month nine."
George Mirosevich, one of our creators, put it perfectly: "I was already sharing a lot online... BTS just helped me turn it into something much more tangible." That tangibility? It shows up in MRR.
MRR vs Related Concepts
MRR vs ARR (Annual Recurring Revenue)
| Metric | Calculation | Best For |
|---|---|---|
| MRR | Monthly subscription total | Month-to-month tracking |
| ARR | MRR × 12 | Annual planning, valuation |
ARR is simply MRR multiplied by 12. Use MRR for operational decisions, ARR for big-picture planning.
MRR vs Total Revenue
Total revenue includes one-time purchases, tips, and non-recurring income. MRR isolates only the predictable subscription portion. Both matter, but MRR tells you about sustainability.
MRR vs Gross Revenue
Gross revenue is before platform fees and payment processing. Your actual MRR should account for net revenue—what you actually receive.
What we've learned: "Creators often confuse gross MRR with net MRR. On BTS, our transparent fee structure (from 3.5% on Pro) means creators keep more of their MRR."
Common Confusions
- MRR is not monthly revenue (one-time sales don't count)
- MRR is not cash in bank (annual payments are spread across 12 months)
- MRR is not profit (you still have expenses)
How to Use MRR in Your Creator Business
Getting Started with MRR Tracking
Step 1: Separate your recurring revenue from one-time sales Step 2: Normalise all subscriptions to monthly equivalents Step 3: Track weekly to spot trends early Step 4: Break down by tier to understand what's working
Setting MRR Goals
Our recommendation: "Based on working with 1,600+ creators, we suggest setting 90-day MRR targets rather than monthly ones. This accounts for natural fluctuation while keeping you accountable."
| Creator Stage | Realistic 90-Day MRR Goal |
|---|---|
| Just Starting | $500-$1,000 |
| Building Momentum | $2,500-$5,000 |
| Established | $10,000+ |
How BTS Helps
BTS is where creators turn content and community into real businesses. We give creators one place to build something they own—including real-time MRR tracking, member analytics, and growth insights.
Everything runs behind the scenes in one space. You focus on creating; we handle the infrastructure.
Frequently Asked Questions About MRR
What is MRR in simple terms?
MRR (Monthly Recurring Revenue) is the total predictable income you receive each month from subscriptions. It's your financial baseline—the revenue you can count on before any new sales happen.
How do I calculate my MRR?
Add up all your active monthly subscription payments. For annual subscribers, divide their payment by 12. For weekly subscribers, multiply by 4.33. The sum is your MRR.
What is a good MRR for creators?
From our experience: "Most full-time creators need $5,000-$10,000 MRR to replace traditional income. Top creators on BTS exceed $20,000 MRR."
Why is MRR better than tracking total revenue?
MRR shows sustainable, predictable income. Total revenue includes spikes from launches and one-time sales that won't repeat. MRR tells you what your business actually earns month-over-month.
How do I increase my MRR?
Three ways: acquire new subscribers, reduce churn (cancellations), or increase pricing/upsell existing members. Most creators focus only on acquisition—smart creators optimise all three.
What is MRR churn and why does it matter?
Churn is the percentage of MRR lost to cancellations each month. A 5% monthly churn means you lose half your members annually. Reducing churn often matters more than acquiring new members.
What is the difference between MRR and ARR?
ARR (Annual Recurring Revenue) is MRR multiplied by 12. Use MRR for monthly operations; use ARR for annual planning and business valuation.
How much does BTS cost?
BTS offers a free Starter plan to get started. Our Pro plan is competitively priced for serious creators at $149/month with a lower 3.5% + 30c transaction fee. Check our pricing page for current rates.
Is BTS free to use?
Yes! We offer a free Starter plan that lets you launch and start earning with a 10% transaction fee. Upgrade to Pro when you need more features and better rates.
What makes BTS different from other creator platforms?
We focus on creator business infrastructure, not just monetisation. Unlike Patreon (which monetises content) or Skool (classroom-style interface), BTS is designed to look and feel like a modern brand. Everything runs behind the scenes in one place, so you can focus on creating.
Can I migrate my existing members to BTS?
Absolutely. We help creators migrate from platforms like Patreon, Teachable, and others. Your members can transfer seamlessly with their billing intact.
How long does it take to set up BTS?
Most creators launch within a day. Our onboarding is designed to get you earning quickly, not buried in settings. If you have an audience but no structure, BTS is the answer.
Does BTS take a percentage of my earnings?
Our fee structure is transparent: Starter is 10% per transaction (free to start), Pro is 3.5% + 30c per transaction plus $149/month. Check our pricing page for the exact breakdown.
What kind of support does BTS offer?
We provide hands-on creator success support. Real humans who understand your business, not just ticket systems. We focus on structure and momentum, not algorithms.
Can I use my own domain with BTS?
Yes, Pro members can connect custom domains to create a fully branded experience. Your business, your brand.
What is Net New MRR?
Net New MRR = New MRR + Expansion MRR - Churned MRR - Contraction MRR. It's the actual change in your MRR from one month to the next, accounting for all factors.
Should I offer monthly or annual subscriptions?
Both. Annual subscriptions improve cash flow and reduce churn. Monthly subscriptions lower the barrier to entry. Our data shows: "Creators offering both options see 40% higher MRR than monthly-only creators."
How often should I track MRR?
Weekly. Monthly tracking misses important trends. Weekly MRR reviews let you spot problems early and double down on what's working.
What is the best way to grow MRR in 2026?
Focus on retention first, expansion second, and acquisition third. Most creators do the opposite. A 1% reduction in churn often beats a 10% increase in new subscribers.
Key Takeaways
- MRR is your financial foundation—the predictable monthly revenue from subscriptions
- Calculate MRR by summing all monthly subscription payments (normalise annual/weekly payments)
- Track weekly to spot trends before they become problems
- Focus on retention—reducing churn often matters more than acquiring new subscribers
- Use MRR for decisions—pricing, tiers, and investments should all tie back to MRR impact
Ready to build predictable revenue? BTS gives creators one place to build something they own. Start tracking your MRR and turn your content into a real business.
About the Author
The BTS Team is the Content Team at BTS, creator business experts helping over 1,600 creators turn content and community into real businesses. We've facilitated $1.4M+ in creator payouts and built the infrastructure that lets creators focus on what they do best—creating.
Sources
- BTS internal creator data (2024-2026)
- Creator economy subscription benchmarks
This article reflects BTS's methodology and experience as of January 2026.
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