How is Monthly Recurring Revenue (MRR) calculated in Analytics?
The Monthly Recurring Revenue (MRR) calculation shown on the Industry Benchmark dashboard displays the average revenue amount by month for subscriptions on your store.
The standard subscription calculation is straightforward. The calculation takes the total recurring revenue for the range selected and divides it by the number of months.
For prepaid subscriptions, the calculation is a bit more complicated. To calculate the MRR for prepaid orders, Recharge divides the recurring amount by the prepaid frequency. For example, if a customer was charged $90 every 3 months for their subscription, their MRR would equal $30.
If a customer adjusts their payment frequency, then the MRR will incorrectly calculate based on the new frequency. For example, if a customer was charged $90 every 3 months for their subscription, but updated their payment frequency to charge every 4 months, the MRR would be incorrectly calculated at $22.67.
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