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.
The formula
MRR = sum of every paying subscription's price per month
An example
40 customers on €9 a month, 10 on €90 a year and 2 teams on €29 a month with 3 seats: 40 × 9 + 10 × 90 ÷ 12 + 2 × 29 × 3 = €360 + €75 + €174 = €609 MRR.
Work it out with your numbers →How Sumly counts it
- A yearly plan counts as a twelfth of its price each month; a weekly one as 52 ÷ 12 of its price.
- A discount that is still running comes off; one that has ended does not.
- A trial does not count until it is paid for.
- A subscription stops counting the moment its cancellation is scheduled, not when the paid period runs out. This is Stripe's own rule, so the number matches theirs.
- Every currency is turned into euros at the European Central Bank's rate of the day.
Mistakes that make it lie
- Adding a yearly payment to the month it was paid in, which makes MRR jump and fall.
- Counting one-off sales or setup fees, which do not repeat.
- Counting trials, which may never pay.
Questions
Is MRR the same as revenue?
No. Revenue is the money that came in during a period, one-off sales and yearly payments included. MRR is the recurring part, spread evenly over the months.
Should tax be in MRR?
No. Tax is collected for the state. Where a provider is the merchant of record (Paddle, Lemon Squeezy, Polar, Creem), Sumly counts without it.
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