How do I calculate Monthly Recurring Revenue (MRR)?
An example of an AI chatbot conversation about MRR calculation examples.
How do I calculate Monthly Recurring Revenue (MRR)?
To calculate MRR, multiply the total number of subscribers by the average revenue per user (ARPU).
Can you give me an example with numbers?
Sure! If you have 100 subscribers paying $10 each, your MRR would be 100 x $10 = $1000.
What if I have different subscription tiers?
In that case, calculate the MRR for each tier separately and then sum them up. For example, 50 at $10 and 30 at $20 gives you MRR of (50x10) + (30x20) = $500 + $600 = $1100.
How does churn affect MRR?
Churn reduces MRR as it represents lost revenue from subscribers who cancel their subscriptions. You should factor it into your calculations.
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