How is MRR calculated?
Posted: Tue Mar 18, 2025 8:45 am
MRR can be broken down to gain useful insights into the growth of different aspects within a company. For example, revenue, trends, or weaknesses that could be improved.
New Recurring Income
New MRR refers to the monthly recurring revenue generated by chinese overseas africa database new customers. If 10 users join in a month, and half pay $50 and the other half $100, the new MRR will be $750.
MRR Expansion
This number is made up of additional monthly recurring revenue from existing customers. It's also known as "upgrading" and can result from an upsell or cross-sell. Using the previous example, if four customers upgrade their contracts from $50 to $100, the MRR from the upgrade will be $200.
MRR Rotation
MRR churn represents the revenue lost due to cancellations or subscription downgrades to cheaper options. If one customer cancels a $50 subscription and three customers downgrade their subscription from $100 to $50, the churn MRR will be $200.
New Recurring Income
New MRR refers to the monthly recurring revenue generated by chinese overseas africa database new customers. If 10 users join in a month, and half pay $50 and the other half $100, the new MRR will be $750.
MRR Expansion
This number is made up of additional monthly recurring revenue from existing customers. It's also known as "upgrading" and can result from an upsell or cross-sell. Using the previous example, if four customers upgrade their contracts from $50 to $100, the MRR from the upgrade will be $200.
MRR Rotation
MRR churn represents the revenue lost due to cancellations or subscription downgrades to cheaper options. If one customer cancels a $50 subscription and three customers downgrade their subscription from $100 to $50, the churn MRR will be $200.