Committed MRR
Monthly recurring revenue from signed contracts and active subscriptions — deals that are closed and generating predictable income.
What is Committed MRR?
Committed MRR is the portion of your monthly recurring revenue that comes from signed, active agreements. Unlike pipeline MRR (deals in progress), committed MRR represents money you can count on.
The distinction matters for runway planning. Pipeline deals might close, but committed deals are already generating revenue. Using pipeline MRR in your runway calculation creates a false sense of security.
Committed MRR grows when you close new deals or upsell existing customers, and it decreases when customers churn or downgrade.
Why it matters
When calculating runway, you want to use committed MRR — not projected or pipeline MRR. Overly optimistic revenue assumptions are one of the most common reasons founders overestimate their runway.
Committed MRR is also the number to use when reporting to investors. It's verifiable, defensible, and not subject to optimism bias.
Formula
Committed MRR = Sum of MRR from all signed, active contracts
Example
You have 15 customers on monthly plans totaling $12,000/month, and 3 customers on annual contracts equivalent to $4,500/month. Committed MRR = $16,500. You also have 5 deals in the pipeline worth $8,000/month, but these are not committed until signed.
How RunwayCal helps
RunwayCal separates committed deals from pipeline deals in the revenue module. Only committed MRR flows into your core runway calculation, while pipeline deals can be modeled as scenarios to see their potential impact.
Common mistakes
- 1Including pipeline or verbal-agreement deals in committed MRR
- 2Not removing churned or downgraded customers from committed MRR promptly
- 3Using committed MRR for long-term projections without accounting for expected churn
Separate committed revenue from wishful thinking
RunwayCal tracks committed vs pipeline MRR separately — so your runway calculation reflects reality, not hope.
Track committed MRR → Start free