Monthly Recurring Revenue (MRR) calculation

Bookkeeping service/CFO service

What is Monthly Recurring Revenue (MRR)?



3 Tips for calculationg MRR:

Calculate upgraded MRR
For instance, if an existing customer who subscribed to a basic plan of $50 per month moves to a standard plan of $200 per month and purchases an add-on for $25 per month, then the upgraded MRR will be $200 less $50 plus $25 equals $175.

Calculate Downgraded MRR
For instance, if a customer downgraded their subscription from a higher plan for $500 to a basic plan for $100, then the Downgraded MRR will be $500 less $100 equals $400.

Calculate churn MRR
For instance, if 3 of your customers who were each paying $1000 per month cancel their subscriptions in the same month, then your churn MRR for the month is $3,000.



Monthly Recurring Revenue is a key metric for active subscription-based companies.


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