3. Breakdown by cohort
The top-level information is great, but you’ll also want to break things down by type of pricing plans, cohorts, etc. Just follow the same process as above, but only include data from the segments that you're interested in.
4. Calculate MRR growth
Once you know your MRR, you’ll want to know your MRR growth as well. You can do this by breaking down the above sections into cohorts like “New MRR”, “MRR from Add-ons”, or “Churn MRR”. To get your total growth MRR, you’ll do this calculation:
(New MRR + Add-on MRR) - Churn MRR = growth MRR.
The steps above are probably a little abstract to you at the moment, so here's a more concrete example. If you have 10 customers in your Basic plan at $10 per month, and 10 customers in your Pro plan at $15 per month, your total MRR would be (10 x $10) + (10 x $15) = $250.
Admittedly, this can and should get much more complicated as you start to dig into your key metrics more. You’ll want to measure your expansion MRR (upgrades), customer churn, downgrades, new, etc. as below:
Yet, the larger point here is that monthly recurring revenue, especially on the top level, is purely your actual subscription value and your number of customers. Keep in mind that all of this commentary is referring to months that have already happened. When you’re cooking with gas, you’ll want an update day by day tracking your MRR, which becomes more of an issue when you’re caring about the MRR breakdown (churn, upgrades, downgrades, new, existing). We’ll save that commentary for another post.