In Kaching Subscriptions, we calculate MRR by normalizing each subscription’s billing frequency to a monthly value. This allows a consistent way to compare revenue across daily, weekly, monthly, and yearly subscriptions.
We look at every active subscription contract and convert its billing price into a monthly equivalent. Here’s how:
Daily subscriptions
Multiply the price by 30.437 (average days per month) and divide by the billing interval count.
Example: $10 per day → $10 × 30.437 = $304.37 MRR
Weekly subscriptions
Multiply the price by 4.345 (average weeks per month) and divide by the billing interval count.
Example: $20 per week → $20 × 4.345 = $86.90 MRR
Monthly subscriptions
Divide the price by the billing interval count.
Example: $60 every 2 months → $60 ÷ 2 = $30 MRR
Yearly subscriptions
Divide the price by the billing interval count, then divide again by 12 months.
Example: $120 per year → $120 ÷ 12 = $10 MRR
What’s included in MRR
Line item prices → the base subscription product(s)
Shipping costs → if part of the recurring charge
Example
Imagine you have these 4 subscriptions:
Subscription | Billing Plan | Price | MRR Contribution |
Customer A | Daily | $10 | $304.37 |
Customer B | Weekly | $20 | $86.90 |
Customer C | Every 2 months | $60 | $30.00 |
Customer D | Yearly | $120 | $10.00 |
MRR = $304.37 + $86.90 + $30.00 + $10.00 = $431.27
While MRR is a great way to understand your recurring revenue run-rate, it doesn’t reflect the exact timing of charges. For a more precise view of upcoming cash flow, check out our guide on Expected collections next 30 days.
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