What is Committed MRR (CMRR)?

Committed Monthly Recurring Revenue (CMRR) is a forward-looking SaaS metric that combines the current MRR with the guaranteed MRR from new bookings and expansion, and subtracts any known upcoming churn or downgrades. It provides a more accurate forecast of what MRR will look like in the near future.

For Startups: CMRR is a powerful metric for internal planning and for communicating with investors. It provides a more stable and predictable view of the business than simple MRR, as it accounts for both positive and negative changes that are already known.

For SaaS: It helps the finance team provide a more accurate revenue forecast and allows the management team to understand the true momentum of the business, beyond the fluctuations of daily new business.

Calculation: CMRR = Current MRR + New Bookings MRR + Expansion MRR - Known Churn MRR

Example: A company has ₹10 Lakh MRR. It signed ₹1 Lakh in new deals and has a customer who has given notice to churn their ₹50,000 contract next month. The CMRR is ₹10L + ₹1L - ₹50k = ₹10.5 Lakh.