Monthly Recurring Revenue (MRR) is your predictable monthly revenue based on the number of subscribers in each subscription plan.
MRR is helpful for reporting growth, analyzing trends, and planning for the future.
You'll see your Current MMR on your Subscription tab.
We recalculate MRR in the platform every 10 minutes.
How We Calculate MRR
We've designed our MRR calculation to take into account all plan durations, whether it's monthly, bi-monthly, yearly, etc.
We take the latest paid invoice amount of each customer with active subscription access (this includes customers who are pending cancellation because the final date of their subscription has not passed). Then we divide by the number of days in their subscription period.
From there, we multiply daily recurring revenue on the average amount of days in the month during the year (30.42 days).
Here's an example calculation for one subscriber, based on the most recently paid invoice of $100 for a yearly subscription.
$100 / 365 days * AVERAGE_MONTH_DURATION (30.42) = $8.33
A Few Things That Can Affect MRR
Now, if you are looking at the number of active subscribers and know what your MMR should be, but it's not that number, well, there can be a few things that might be affecting the calculation.
The most recent invoice for a customer may have a coupon code applied, so if you have a few customers redeeming a $5 dollar coupon, it all adds up to reduce your MRR.
Since MRR relies on the most recent invoice, subscribers who have not yet paid an invoice will not be included in the calculation. This can apply to trial subscriptions or if you as an admin grant direct access to a plan, then that subscriber has essentially bypassed the initial checkout/payment process. Once they pay their first invoice they will be included in the calculation.