Monthly recurring revenue

Monthly recurring revenue, or MRR, is an important metric for any subscription business. It’s a forward-looking metric that helps you understand how your business is performing and how it’s likely to perform in the future. It’s also a great way to understand how your business is growing and how that growth is changing over time.

How Mantle calculates your MRR

In order to accurately calculate your MRR, Mantle needs to know both the billing interval and plan value of all active subscriptions across your organization’s apps, as well as things like trial end dates and whether or not a subscription is currently in a trial period. In addition (and if applicable) we also take into account daily usage charges and existing discounts. So to break that down, here’s what we include in our MRR calculation:

• Monthly subscriptions: the value of all monthly active subscriptions across your organization’s apps, less any discounts.
• Annual subscriptions: the 12-month amortized value of all active annual subscriptions across your organization’s apps, less any discounts.
• Usage charges: includes the value of all usage charges in the 30 days prior to the period’s anchor day (more on that below),
• Trials: the value of all active trials across your organization’s apps, less any discounts. Once trials are set up in Mantle, they will be excluded from base MRR calculations but can still be viewed in Mantle’s MRR charts

MRR (Monthly Recurring Revenue) is a dynamic and forward-looking metric. It’s calculated using the total value of your active subscriptions from the last day of the month, not including churned subscriptions and trials.

However, for the current month, the calculation is based on today’s MRR. This ensures the metric remains current and reflective of ongoing changes.

Given all this data, Mantle can then calculate your monthly recurring revenue (MRR) by aggregating the total value of all active subscriptions and usage across your organization’s apps at any given point in time.

Customizing your MRR calculation

Mantle allows you to customize your MRR calculation by selecting which apps and revenue types you would like to include in your MRR calculation. This allows you to get a view of your MRR that is tailored to your business and your goals. For example, you may want to exclude certain apps from your MRR calculation if they are not yet live or if they are not yet generating revenue.

Next: Revenue