How is total MRR metric in RevenueStory calculated?

Modified on: Mon, 8 Nov, 2021 at 1:48 PM

Total MRR 
 
Monthly recurring revenue earned from subscriptions.
Explanation of metric

A trend line depicts the total predictable Monthly Recurring Revenue earned from Customers.

A point-in-time indicator is also available for this metric. This KPI represents the Total MRR of subscriptions in the current period. It also compares the Total MRR for the previous period and percentage change across both periods.


How it's measured
Total MRR = Total MRR of Subscriptions during the period

Note:
Included in Total MRR
- Revenue from Recurring Plans and Addons
- Recurring Coupon discounts
Included in Total MRR (If Configured)
- One time coupons
- Metered charges
- Non-recurring Addons (as per configuration)
Excluded from Total MRR
- Setup fee
-- Credit adjustments
-- Any non-recurring ad-hoc charges
-- Amount charged towards tax


Reading

Up: Good

Interpretation
  • It depicts the health of a business, something an investor will look at before investing in the business. Total MRR is the north star metric that should increase in order to maintain sustainable growth.
  • Example: In a given period, 200 subscriptions are on Plan A ($50/Month) and 50 subscriptions has a recurring Addon ($10/month)
    MRR = (200 x 50) = $10,000
    Recurring Addon = (50 x 10) = $500
    Discount per Subscription = $10
    Total Discounts = (200 x 10) = $2,000
    Total Set up Fees = $700
    Total MRR = (10,000 + 500 - 2,000) = $8,500

Click here to read about other metrics.


M
Monica is the author of this solution article.

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