Short answer
RMR growth is the recurring monthly revenue you add from new accounts minus the RMR you lose to cancellations. In one line: Net RMR growth = Gross RMR added − Attrition RMR, and your RMR growth rate = Net RMR growth ÷ Starting RMR.
The formulas that matter
Net RMR growth
Net RMR growth = Gross RMR added − Attrition (lost) RMR
The recurring revenue you actually kept over the period.
RMR growth rate
RMR growth rate = Net RMR growth ÷ Starting RMR × 100
Net growth as a percentage of where you started.
RMR attrition (churn) rate
Attrition rate = Attrition RMR ÷ Starting RMR × 100
The share of recurring revenue lost to cancellations.
Annual recurring revenue
ARR = Ending RMR × 12
RMR annualized — the number most valuations start from.
A worked example
Say you start a month with $50,000 in RMR. You sign new accounts worth $4,000 in monthly recurring charges, and you lose $1,500 of RMR to cancellations.
Net RMR growth of $2,500 on $50,000 is a 5% monthly RMR growth rate, even while losing 3% to attrition. Want to project it forward? Use the RMR calculator.
Frequently asked questions
What is RMR?
RMR stands for recurring monthly revenue — the predictable monthly income from monitoring, service, and maintenance contracts. It's the core metric alarm and security companies manage, because it compounds and drives enterprise value.
How do you calculate RMR growth?
Take the gross RMR you added from new accounts in a period and subtract the RMR you lost to cancellations. That's your net RMR growth. Divide it by your starting RMR to get your RMR growth rate as a percentage.
What is a good RMR growth rate?
It varies by company size and market, but the goal is consistent positive net growth — adding more RMR from new accounts than you lose to attrition each month. Keeping attrition low matters as much as adding new accounts.
Why does RMR matter so much for alarm companies?
Alarm and security businesses are commonly valued as a multiple of their RMR, so protecting and growing recurring revenue directly increases the value of the business — not just this month's cash flow.
Updated July 2026. Standara automates recurring (RMR) billing end-to-end — see RMR billing.