> For the complete documentation index, see [llms.txt](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/reporting/metrics/metric-reports/mrr-arr-by-contract-type.md).

# MRR / ARR by Contract Type

The **MRR / ARR by Contract Type** report shows recurring revenue grouped by contract category and displayed by period, so you can see how each contract type contributes to Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) over time and how that revenue changes between periods.

### Understand What This Report Shows

This report displays recurring revenue segmented by contract type and tracks how that revenue changes from one period to the next.

<figure><img src="/files/6amMCBKv2VBybx0fVHWT" alt=""><figcaption></figcaption></figure>

Use the **MRR** and **ARR** tabs above the chart to toggle which measure the report displays. The table below the chart breaks recurring revenue out by period and movement type:

| Column                                                                       | Description                                                                                                                                                        |
| ---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Period**                                                                   | The reporting month.                                                                                                                                               |
| **Previous (Existing)**                                                      | Recurring revenue carried over from the prior period.                                                                                                              |
| **New Sales**, **Reactivation**, **Churned**, **Expansion**, **Contraction** | The period's revenue movements, broken out by type. See [**Understand Revenue Classification**](#understand-revenue-classification) below for what each one means. |
| **MRR** / **ARR**                                                            | The resulting total recurring revenue for the period, based on the selected tab.                                                                                   |

Revenue is organized by contract category so you can review how each type contributes to total recurring revenue in each reporting period.

### Understand Revenue Classification

For each customer, **Rillet** compares recurring revenue between the current and previous period and classifies the change into one of the categories below.

| Type             | Description                                                                                                                                                        |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **New Sales**    | Revenue generated from customers who begin generating recurring revenue for the first time.                                                                        |
| **Reactivation** | Revenue from customers who previously had no recurring revenue and became active again.                                                                            |
| **Churned**      | Revenue lost from customers who no longer generate recurring revenue.                                                                                              |
| **Expansion**    | Additional recurring revenue from existing customers who increased their contract value.                                                                           |
| **Contraction**  | Reduced recurring revenue from existing customers who downgraded or reduced their contract value.                                                                  |
| **Usage Impact** | Changes in recurring revenue driven by usage-based or metered billing products. Calculated as the current month usage overage minus the prior month usage overage. |
| **FX Impact**    | Changes in recurring revenue caused by currency exchange rate fluctuations for multi-currency contracts.                                                           |

### Understand How the Report Works

To calculate MRR and ARR, **Rillet** uses contract line items, invoices, credit memos, and overrides marked as Count to MRR/ARR.

| Attribute          | Description                                                                                                  |
| ------------------ | ------------------------------------------------------------------------------------------------------------ |
| **Product Type**   | The product must be configured to count toward MRR or ARR.                                                   |
| **Product Dates**  | The start and end dates defined on the contract or invoice line item determine when the revenue is included. |
| **Product Amount** | The monetary value of the recurring line item determines the revenue contribution.                           |

Comparing each customer's recurring revenue between the current and prior period, and classifying the change by contract type, shows not just how much recurring revenue changed, but why.

### See Also

To learn more about recurring revenue metrics in **Rillet**, review these articles:

* [**Recurring Revenue (ARR/MRR)**](/EjmEP4KZ9BVp9j2ho4Mh/reporting/metrics/metrics-definitions/recurring-revenue-arr-mrr.md)
* [**ARR / CARR Waterfall**](/EjmEP4KZ9BVp9j2ho4Mh/reporting/metrics/metric-reports/arr-carr-waterfall.md)
* [**Net Revenue Retention**](/EjmEP4KZ9BVp9j2ho4Mh/reporting/metrics/metric-reports/net-revenue-retention.md)
* [**ARR Overrides**](/EjmEP4KZ9BVp9j2ho4Mh/reporting/metrics/metrics-definitions/arr-overrides.md)
* [**Cash Runway**](/EjmEP4KZ9BVp9j2ho4Mh/reporting/metrics/metrics-definitions/cash-runway.md)


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