The numbers, explained

What each number means, how to work it out with a real example, and how Sumly counts it, so the figure on your screen never surprises you.

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MRR MRR: what a month of subscriptions is worth MRR means monthly recurring revenue: what your active subscriptions bring in each month, with yearly and weekly plans turned into their monthly share. ARR ARR: your recurring revenue over a year ARR means annual recurring revenue. It is MRR times twelve: what the subscriptions you have today would bring in over a year if nothing changed. Churn rate Churn: how much you lose each month Churn is the share of customers, or of MRR, that left in a period. Customer churn counts people; revenue churn counts money. LTV Customer lifetime value: what one customer is worth Lifetime value is what an average customer pays you before they leave. For a subscription it follows from how much they pay and how long they stay. ARPU ARPU: what an average customer pays each month ARPU means average revenue per user: MRR divided by paying customers. It shows whether growth comes from more customers or from each one paying more. Quick ratio Quick ratio: new MRR for each euro lost The quick ratio puts what you won against what you lost. Above 1 you grow; the higher it is, the less your growth depends on replacing customers who left. Revenue attribution Revenue attribution: money traced to the visit that started it Visitor counts tell you where people come from. Revenue attribution tells you which of those places bring people who pay. Trial conversion Trial conversion: how many trials pay The share of free trials that turn into a first payment. It tells you whether the product convinces people while they try it.

Calculators

MRR calculatorAdd your plans, monthly and yearly, and see MRR, ARR and the average a customer pays. Churn rate calculatorCustomers and MRR at the start of the month and what you lost: customer churn, revenue churn and how long a customer stays. LTV calculatorWhat a customer is worth from what they pay, how many leave each month, and what fees take. Stripe, PayPal and Paddle fee calculatorWhat a sale leaves you after the provider's fee. The rates are filled in from public list prices; change them to your own.

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