📌 Method: MemberMonthlyRecurringRevenue
This article explains how we calculate the monthly revenue from recurring memberships.
How is MRR calculated?
Filter memberships
Only memberships with a fixed recurring payment (e.g., monthly or annual payments) are included.
Retrieve invoices for the period
All purchases and payments within the specified period are pulled from the database.
Calculation:
Total revenue for the period is divided by the number of recurring members.
Group by segment (gender, age, or total)
Data is divided to understand revenue across different groups.
Example Calculation
We calculate MRR for January, February, and March:
Month | Billed Revenue | Active Subscribers | MRR per Member |
January | 100,000 kr. | 200 | 500 kr. |
February | 105,000 kr. | 210 | 500 kr. |
March | 95,000 kr. | 190 | 500 kr. |
Calculate MRR for March:
95,000190=500 kr. per member\frac{95,000}{190} = 500 \text{ kr. per member}19095,000=500 kr. per member
Compare MRR over time:
An increase indicates growth, while a decrease may signal subscriber loss.
Why is this important?
MRR is a crucial KPI for subscription-based businesses as it shows the expected recurring revenue. Businesses use this number to:
✅ Predict future revenue
✅ Identify subscriber growth or decline
✅ Plan marketing and customer engagement
💡 Result: A graph showing the monthly recurring revenue over time.
Have any questions? Contact us via Intercom chat! 😊