In your SaaS business, Monthly Recurring Revenue (MRR) is used to measure the total predictable revenue generated by your subscriptions in a particular month. Essentially, it’s the monthly value of all your active subscriptions or contracts. MRR is a key metric calculation for SaaS businesses.
Read more about MRR and its importance to SaaS companies in the ScaleXP metrics library.
To calculate MRR for your business plan, you need to know the number of customers and the average monthly payment per customer. Multiply the two together to get monthly revenue.
If you are looking for a tool to convert manually input assumptions into an estimate of your MRR, then there are a number of calculators on the market that provide the basic maths of MRR calculations using manual inputs.
Tools such as Hal Gatewood’s MRR Calculator, Textmagic’s MRR Calculator, WallStreetPrep provide super simple tools to help understand the mathematics of basic revenue collection models, but do nothing to help understand the MRR of real businesses.
Similarly, sites like Memberium and Copywriting Course provide simple calculators as part of general advice to member organisations and copywriters, respectively.
ScaleXP, on the other hand, provides a holistic calculator solution.
ScaleXP does this in the following steps, all of which happen automatically for your business, once subscribed to ScaleXP and linked to your accounting system::
- Converts invoice information automatically into recurring revenue streamsby month
- Adjusts revenue to recurring monthly amounts in configurable MRR reports
- Provides configurable reports, visualisations and PowerPoint downloads analysing the MRR and its movements month to month including information on new, lost, upgraded, downgraded, and reactivated customers.
Moreover, if you have a CRM connection like Hubspot, Salesforce or Pipedrive, you can instantly and automatically incorporate your sales pipeline data directly into your MRR calculations and forecasts using ScaleXP.
Click here to find out more about how ScaleXP can help you calculate and understand your MRR.
