Monthly Recurring Revenue (MRR) is a critical metric for Shopify App Developers. It represents the predictable revenue generated from customers within a monthly cycle. MRR is vital because it offers a clear picture of financial health, aiding in forecasting and strategic planning. It allows developers to understand their income stability from month to month, facilitating better decision-making and long-term planning.
How We Calculate MRR
Our approach to calculating MRR is straightforward but comprehensive. We sum up all recurring revenue from customers within the last 30 days. It’s important to note that for revenue to be counted towards MRR, it must come from subscriptions with a 30-day billing cycle. This excludes revenue from annual subscriptions, ensuring the figure represents truly recurring revenue. Optionally Usage Charges can be included (see variations below).
MRR also includes adjustments for credits and plan downgrades. This means the MRR might be lower than the total value of all active subscriptions. However, this adjustment makes the MRR figure a more accurate reflection of the actual monthly revenue.
Variations
Depending on you use case you may want to adjust how your MRR value is calculated. To change which method is used, click the Variations button and select your preferred algorithm.
Transactions (Default)
MRR based upon confirmed 30-day subscription transactions.
Active Subscriptions
MRR based upon active subscriptions. Active subscriptions includes customers that have subscribed to a plan but yet to pay their bill, as well as paying customers. As revenue is not confirmed, it’s possible that figures here do not fully match actual recorded revenue.
Transactions + Usage Charges
Includes confirmed usage charges for the previous 30-days with the MRR (Transactions). This is especially useful when usage charges are common.
Active Subscriptions + Usage Charges
Includes confirmed usage charges for the previous 30-days with the MRR (Active Subscriptions). This is especially useful when usage charges are common.
More Insights and Metrics
For those looking to dive deeper into their financial metrics, we offer additional resources:
- Annual Revenue: Understand your total revenue over a year.
- Annual Run Rate: Project your yearly revenue based on current figures.
- Annual Revenue Per User: Measure revenue generated per user annually for deeper insights.
- Usage Charges: Revenue generated due to usage charges.
Try SaaS Insights for Free
To get hands-on experience with our Metrics & Analytics Plan, we offer a 14-day free trial. Sign up at saasinsights.com/register to gain full access. This trial is an excellent opportunity for Shopify App Developers to explore our comprehensive analytics tools, including the MRR metric.
MRR for All Customers on the Metrics Plan
The Monthly Recurring Revenue metric is available to all customers subscribed to the Metrics Plan. It’s designed to provide actionable insights, helping Shopify App Developers optimize their revenue streams and grow their businesses sustainably.