What is Committed Monthly Recurring Revenue (CMRR)?

  • SaaS

Committed Monthly Recurring Revenue (CMRR) is a forward-looking financial metric that represents the total monthly recurring revenue a SaaS or subscription-based business can expect to receive based on existing customer contracts and commitments. Unlike traditional Monthly Recurring Revenue (MRR), which reflects current revenue, CMRR includes committed future revenue from signed contracts that haven’t yet started billing.

CMRR encompasses several revenue components: current active subscriptions, committed upgrades or expansions from existing customers, new customer contracts that are signed but not yet active, and renewal commitments for the upcoming period. It excludes uncertain revenue like potential upsells, month-to-month subscriptions that could cancel, or speculative new business.

This metric provides businesses with greater predictability for financial planning, cash flow forecasting, and investor reporting. CMRR is particularly valuable for companies with annual contracts, enterprise deals with implementation delays, or seasonal businesses where revenue recognition timing differs from contract signing dates.

R&D Offer Quiz

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Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.