Skip to main content

MRR

The MRR (Monthly Recurring Revenue) chart is an essential metric for tracking the consistent income generated by your app's subscriptions on a monthly basis. It provides a clear view of how much revenue your app can expect to generate each month from active subscriptions, helping you monitor growth and forecast future revenue.

Calculation​

MRR is calculated by summing up the recurring revenue generated from all active subscriptions within a given month. It includes:

  • New Subscriptions: Revenue from new users who subscribed during the month.
  • Renewal Subscriptions: Revenue from users who renewed their subscriptions within the same month.
  • Upsells or Add-ons: Revenue from any additional purchases or upgrades made by existing subscribers.

The MRR calculation does not include one-time purchases or trial subscriptions that are not converted to paid plans. Additionally, MRR is calculated before accounting for any store fees or taxes.

Example: How MRR is calculated

If your app had the following subscriptions in a given month:

  • 100 new monthly subscriptions at $10 each
  • 50 renewals at $10 each
  • 10 upsells at $5 each

The MRR would be calculated as:
MRR = (100 × $10) + (50 × $10) + (10 × $5) = $1,150

Usage​

MRR is a vital metric for subscription-based businesses, reflecting both the size of your subscriber base and the revenue velocity. It standardizes different subscription durations into monthly recurring revenue, giving you a clear view of your growth.

To maximize MRR in Botsi, segment your subscribers by their first purchase month and set the resolution to monthly. This creates a stacked area chart that shows how cohorts evolve over time, revealing trends and helping you refine your strategy, optimize products, and adjust marketing efforts for growth.