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Knowledge Center > Subscription Management > Customer Accounts > Manage Customer Accounts > Key Metrics for Customer Accounts > Monthly Recurring Revenue

Monthly Recurring Revenue

Monthly recurring revenue (MRR) is a key metric for subscription businesses and represents the monthly revenue for a subscription, order, or charge. The MRR calculates subscription fees normalized to a monthly value, and does not include one-time or usage fees.

MRR Calculation Based on the Subscription Information

You can calculate MRR at any point in time in the following levels:

  • MRR for all customer accounts

    Add up all the customer-level MRR.

  • MRR in customer account level

    Add up all the subscription-level MRR for that customer.

  • MRR in subscription level

    Add up all the charge-level MRR for that subscription.

  • MRR in charge level

    See Charge-level MRR, below, for detailed information.

The MRR can change over time if there are any changes to the subscription during its life cycle. For example, if the customer changes the price of the product to their existing subscription, their MRR changes.

Charge-level MRR

To get charge segment MRRs:

Charge-level MRR is calculated based on the billing period:

Weekly Based Billing Period  

Follow the formula below to calculate MRR values for weekly based billing period:

MRR = (Price / Number_of_Days_of_Base_Price) * 30

For example 1: Suppose your customer subscribes to your recurring charge:

  • Charge Model: Flat Fee Pricing
  • Price: $140
  • List Price Base: Week
  • Billing Period: Week

MRR = ($140/7) * 30 = 600

For example 2: Suppose your customer subscribes to your recurring charge:

  • Charge Model: Flat Fee Pricing
  • Price: $140
  • List Price Base: Per Billing Period
  • Billing Period: 2 Weeks

MRR = ($140/14) * 30 = 300

Monthly Based Billing Period 

Follow the formula below to calculate MRR values for monthly based billing period:

MRR = Price / Number_of_Months_in_a_Billing_Period

Example 1: Suppose your customer subscribes to your recurring charge:

  • Charge Model: Flat Fee Pricing
  • MRR: $300
  • List Price Base: Per Billing Period
  • Billing Period: Month

MRR = 300 / 1 = 300

Example 2: Suppose your customer subscribes to your recurring charge:

  • Charge Model: Flat Fee Pricing
  • MRR: $300
  • List Price Base: Per Billing Period
  • Billing Period: Quarter

MRR = 300 /3 = 100

Full-term Based Billing Period 

If you select Subscription Term as the billing period, MRR of recurring charge is calculated based on the list price base:

Calculate MRR From Charge-level Data

Zuora Reporting provides standard MRR reports that you can use to calculate MRR from charge-level data. By default, Zuora Reporting calculates MRR for the day that you run the report.

To report MRR:

  1. Navigate to Reporting > Reporting.

    The Reporting page opens and lists the available standard reports, along with your saved reports. You can search reports by name.

  2. Search for "MRR".

    The Reporting page displays several ways to report MRR, including total MRR and MRR by account.

  3. Choose a way to report MRR, then click Run Summary Report.

    Zuora Reporting calculates MRR and displays the total MRR for each currency in which you charge. If you chose to report MRR by account or product, the results table displays the MRR for each account or product.

  4. (Optional) To export the results table as a CSV file, click Export.

    You can open the exported CSV file in Excel.

  5. (Optional) To add more columns to the results table, or to modify the way that MRR is reported, click Edit Report.

    For example, to change the date that MRR is reported for, modify the filter conditions on Rate Plan Charge: Effective Start Date and Rate Plan Charge: Effective End Date.

    See Create a Summary Report and Filters for more information about modifying reports.

Contracted MRR

Contracted MRR (CMRR) is the future expected MRR that accounts for future creation, upgrades, downgrades, upsells, and cancellations.

The value of CMRR is the MRR of the last charge segment. The charges must meet the following requirements:

  • The charges are not removed or cancelled
  • The charge end condition must align to subscription end date

Otherwise, the CMRR is 0.

Zuora Reporting provides standard CMRR reports that you can use to calculate CMRR from charge-level data. To report on CMRR, follow the instructions in Calculate MRR From Charge-level Data, but search for "CMRR" instead of "MRR".

Discount Charges

Discount charges are not part of the MRR calculation due to the uncertain variables in discounts. For example, you are applying a 100% discount. You set the discount to be applicable for the first three months of a twelve-month term. The calculation cannot set the MRR to 0. It is still the original MRR for the remaining nine months.

Because there are too many variables associated with discount charges, discounts are outside of the booking metrics of MRR and TCV (total contract value).

Last modified
17:32, 7 Feb 2017

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