Monthly Recurring Revenue (MRR)
Agency glossary · Updated July 2026
Definition
Monthly recurring revenue (MRR) is the predictable income an agency can count on each month from active retainers and other recurring contracts, normalized to a monthly figure. It is the clearest measure of how stable and predictable the agency’s revenue base is.
Sum of active retainers, each normalized to a monthly fee (annual value / 12)Why it matters
A high, growing MRR base is committed before the month begins, so it funds fixed costs without re-selling every month and lets the agency invest ahead of demand.
Benchmark
A common target is for recurring income to make up 60% or more of total revenue. Retainers are now the primary model for most agencies.
Common mistake: counting one-off project fees or pass-through ad spend as recurring, which inflates MRR and hides churn in the true recurring base.
Related terms
See it in AgencyKit
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