Subscription MRR

Normalize subscription billing plans to recurring monthly revenue and annualized run rate.

Description

Monthly recurring revenue normalizes subscription billing to a monthly run rate.

Monthly recurring revenue normalizes subscription billing to a monthly run rate. Annual billing contributes its monthly equivalent rather than the whole invoice each month.^[1]

Normalize subscription billing plans to recurring monthly revenue and annualized run rate.

When to use Subscription MRR

Use this for the following task: Normalize subscription billing plans to recurring monthly revenue and annualized run rate.

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.

How to use Subscription MRR and understand its results

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
Enter planNames, subscriberCounts, billingAmounts, billingPeriodMonths using the field table, then run the tool.
Read planMrr, totalMrr, annualizedRunRate. Interpret flags, units, ordering and placeholder values using the rules below.
Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.

Input field	Meaning	Value type and bounds	Requirement
planNames	Plan names	list of string; each entry: string	Required
subscriberCounts	Subscriber counts	list of number; each entry: number	Required
billingAmounts	Billing amounts	list of number; each entry: number	Required
billingPeriodMonths	Billing period months	list of number; each entry: number	Required

Align plan names, nonnegative subscriber counts/amounts and positive integer billing periods. Normalize each plan and sum.^[2]

plan MRR=subscribers×billingAmount/billingPeriodMonths; annualizedRunRate=12 totalMRR

This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.

Output field	Meaning	Value type
planMrr	Plan mrr	list of number
totalMrr	Total mrr	number
annualizedRunRate	Annualized run rate	number

json

{
  "input": {
    "planNames": [
      "monthly",
      "annual"
    ],
    "subscriberCounts": [
      10,
      5
    ],
    "billingAmounts": [
      20,
      120
    ],
    "billingPeriodMonths": [
      1,
      12
    ]
  },
  "output": {
    "planMrr": [
      200,
      50
    ],
    "totalMrr": 250,
    "annualizedRunRate": 3000
  }
}

Limitations and assumptions

Use a consistent currency. This is recurring run rate, not recognized revenue, cash receipts or a forecast.

These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.

Alternative or Complementary methods

Choose MRR Movement Bridge for this operation: Reconcile starting MRR with new, expansion, contraction, and churn movements. For a complementary task, use Net Revenue Retention for this operation: Compute net revenue retention including expansion within the starting customer cohort.

Further background: Billing analytics dashboard.

References

Billing analytics dashboard — Stripe
Subscription MRR — tool.io

Similar or alternative tools

MRR Movement Bridge
Reconcile starting MRR with new, expansion, contraction, and churn movements.
Net Revenue Retention
Compute net revenue retention including expansion within the starting customer cohort.