What is included/excluded in the MRR calculation?

Modified on: Sat, 26 Jun, 2021 at 11:16 PM

What is included in the MRR calculation?

  • All recurring plans & add-ons

  • Recurring Coupon discounts

  • Non-recurring add-ons  (based on configuration settings)

  • One-time coupons (based on configuration settings)

Learn more on how to configure the flexible MRR components. 

MRR takes into account all the Active and Non-Renewing Subscriptions. Subscriptions in "Future" and "In Trial" status are not included in the calculation.

What is excluded in the MRR calculation?

  • Setup fee

  • Credit adjustments

  • Any non-recurring ad-hoc charges

  • Amount charged towards tax

Example 1:

If you have 10 customers paying $50 per month, your MRR is 10*50 = $500. If you have acquired two more customers on a more high-priced plan of $100 per month in the same period, then your MRR increases to $700.

Example 2: 

MRR is a forward-looking and point-in-time metric. Any mid-period calculation will drop the MRR value to zero for that period. 

For example, if a subscription having a monthly plan for $100 is canceled on the 17th of that month, then the MRR will be $100 from 1st - 16th and the value drops to zero from 17th onwards. Also, the MRR is considered to be zero for the entire month as MRR for that particular month-end is zero.

Note: 
- Any non-recurring ad-hoc charges are not included in the MRR calculation unless specified in the configuration.
- One-time coupons are not included in the MRR calculation unless or otherwise specified in the configuration. However, if the same coupon is applied in subsequent renewal, it gets included in the MRR calculation.
- Since the MRR reflects immediate changes made to your subscriptions, it can sometimes fluctuate by accounting for activations, upgrades, cancellations, downgrades, and any other changes made to your active subscriptions (such as charges for add-ons and coupons) over the course of the current month.

M
Monica is the author of this solution article.

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