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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 subscription 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 it by 12.

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

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