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How is Monthly Recurring Revenue (MRR) calculated?

The most important thing to note about MRR, is that the billed value of all subscriptions - whether you’re selling on daily, weekly, monthly or annual billing cycles - is converted into their monthly equivalent. We do this in the following way:

  • If the subscription is billed daily - we divide the invoice charge by the plan length and multiply by 30.
  • If the subscriptions is billed weekly - we divide the invoice charge by the plan length and multiply by 4.33.
  • If the subscription is billed monthly - we divide the invoice charge by the plan length.
  • If the subscription is billed annually - we divide the invoice charge by the plan length and divide by 12.

For monthly subscriptions, we use the actual value charged, as there is no need to convert this further.

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