MRR calculation formula

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To calculate this metric, you need to multiply the number of customers using the company's products by the average monthly subscription price.

MRR = Average Monthly Customer Payment x Number of Customers

The average amount paid by the buyer per month allows us to get an idea of ​​the amount of profit from him using the product on a long-term basis. The income is not predicted to the penny, but india mobile phone numbers database the data obtained can be used for planning and evaluating the effectiveness.

Company profit growth

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MRR is calculated using one of several formulas. Let's look at each of them in more detail.

The profit received from each client is summed up

So, if buyer 1 contributed 1,000 rubles, buyer 2 contributed 2,000 rubles, buyer 3 contributed 2,500 rubles, the total income will be 5,500 rubles.

This option can be used if the number of clients of the company is small. Otherwise, the calculation may be too cumbersome, take a lot of time and contain inaccuracies.

The second formula uses the calculation of average profit.

This value is multiplied by the number of customers, which allows us to calculate the total income. Thus, for the above three customers, the average income will be 5500 rubles / 3 = 1833.33 rubles.

This formula can be used with a large number of customers who purchase a product with a minor difference in cost for each customer. For example, you can sell cellular services in one of several options at a price of 400, 500, 550 rubles. If the number of customers is measured in thousands, then minor differences in the price of the package are approximately compared in the calculation.