MRR
The MRR (Monthly Recurring Revenue) chart is an essential metric for tracking the consistent income generated by your app's subscriptions on a monthly basis. It provides a clear view of how much revenue your app can expect to generate each month from active subscriptions, helping you monitor growth and forecast future revenue.
Calculation
MRR is calculated by summing up the recurring revenue generated from all active subscriptions within a given month. It includes:
- New Subscriptions: Revenue from new users who subscribed during the month.
- Renewal Subscriptions: Revenue from users who renewed their subscriptions within the same month.
- Upsells or Add-ons: Revenue from any additional purchases or upgrades made by existing subscribers.
The MRR calculation does not include one-time purchases or trial subscriptions that are not converted to paid plans. Additionally, MRR is calculated before accounting for any store fees or taxes.
Example: How MRR is calculated
If your app had the following subscriptions in a given month:
- 100 new monthly subscriptions at $10 each
- 50 renewals at $10 each
- 10 upsells at $5 each
The MRR would be calculated as:
MRR = (100 × $10) + (50 × $10) + (10 × $5) = $1,150
Usage
MRR is a vital metric for subscription-based businesses, reflecting both the size of your subscriber base and the revenue velocity. It standardizes different subscription durations into monthly recurring revenue, giving you a clear view of your growth.
To maximize MRR in Botsi, segment your subscribers by their first purchase month and set the resolution to monthly. This creates a stacked area chart that shows how cohorts evolve over time, revealing trends and helping you refine your strategy, optimize products, and adjust marketing efforts for growth.