Recurring Revenue

Recurring revenue happens when a customer buys goods or services on a regular basis; for example, a monthly subscription.

Monthly Recurring Revenue

Your Monthly Recurring Revenue (MRR) provides essential information about the overall performance and growth rate of the company.

Monthly Recurring Revenue includes all customers with active subscriptions for the selected period of one month.

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Formula

MRR = The sum of all subscriptions on the last day of the display period, for example, a week or a month, converted into reporting currency.

Monthly Recurring Revenue Growth Breakout

The MRR Growth Breakout is a chart to display the different elements of MRR growth for the selected period: New, Upgraded, Churned and Downgraded MRR movements.

Annual Recurring Revenue

Annual Recurring Revenue includes all customers with active subscriptions for the selected period of one calendar year. Note that ARR is different from 12-month rolling revenue which collects data from previous 12 months regardless of the calendar year.

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Formula

ARR = The annualized sum of all subscriptions on the last day of the annual period, converted into reporting currency. For example if the Monthly Recurring Revenue of the subscription is 100 USD / month, the Annual Recurring Revenue is 12 x 100 USD = 1,200 USD.

Data sources

  • Integrations to Subscription Management Software
  • Integrations to Accounting Software
  • CSV file imports
  • Manual entries in Calqulate
  • Data import via API