To calculate the Monthly Recurring Revenue (MRR):
\[ MRR = TS \times AMR \]
Where:
MRR, short for monthly recurring revenue, is a term used in business, mostly with subscription-based services, to describe the total monthly revenue the company expects to see on a recurring basis. The reason this term is used for subscription-type services is that subscribers typically pay a recurring fee for the service. Most often it’s a monthly fee, but it can even be annually.
Let's assume the following values:
Using the formula:
\[ MRR = 1000 \times 50 = 50000 \text{ dollars per month} \]
The Monthly Recurring Revenue is $50,000 per month.
Let's assume the following values:
Using the formula:
\[ MRR = 500 \times 30 = 15000 \text{ dollars per month} \]
The Monthly Recurring Revenue is $15,000 per month.
