How Limited coupons are calculated for Yearly subscriptions' MRR calculations?

Modified on: Mon, 4 Jul, 2022 at 6:37 PM

This article covers 

Why are my coupons included in monthly MRR but not in yearly MRR calculation?
Are limited coupons included in the MRR calculation? Is there any limitation with this option?


Consider you have a limited period coupon (applicable for 12 months) that is applied on a yearly subscription.

This coupon would not be used in the MRR calculation for the yearly subscription. However, if the same limited period coupon is associated with a monthly subscription, the MRR would be calculated correctly by applying the coupon as it becomes a recurring coupon to the monthly subscription. 

If it's applied to a yearly subscription, it technically becomes a one-time coupon to it due to which it's not valued in the calculation of the MRR. 


To overcome this, as a workaround, Chargebee has a feature called Flexible MRR Calculation which can be enabled from our end on request. With this, Chargebee allows a flexible MRR calculation to include one-time coupons and charges. 

Further, even if the flexible MRR calculation is enabled, you would need to associate only a one-time coupon to a yearly subscription to ensure that it gets counted in the calculation of MRR. A limited duration coupon with a yearly subscription will still not have the coupon included in the MRR. 

Related articles and Documentation

Flexible MRR in Chargebee

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