# Monthly recurring revenue (MRR): Formula and dbt YAML | Silicon

URL: https://meetsilicon.com/metrics/monthly-recurring-revenue/

> Monthly recurring revenue is the predictable subscription revenue a business earns each month, normalised to a monthly amount.

## Formula
MRR = sum of monthly subscription value for all active subscriptions
## Why it matters
MRR is the heartbeat of a subscription business. Movements in MRR break down into new, expansion, contraction and churned revenue.
## Common pitfalls
- Annual plans must be divided by 12, not counted in the month they are billed.
- One-off fees and usage overages are usually excluded.
## Define it in dbt for Silicon
Add this to your model's YAML. Aggregate metrics sit under a column's meta.metrics; ratios are type: number metrics that reference other metrics. Rename models and columns to match your project.
schema.yml Copy
models:
- name: fct_subscriptions
columns:
- name: monthly_amount
meta:
metrics:
mrr:
type: sum
filters:
- is_active: true
description: Monthly recurring revenue from active subscriptions
Once it's defined, anyone can ask about monthly recurring revenue in plain English and get an answer built on this definition. See the metrics reference for every option.
## Related
- Annual recurring revenue (ARR) ->
- Net revenue ->
- Average order value (AOV) ->
- Gross margin ->
- Semantic layer ->
## Tell us where your data lives today.
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