The calculation, explained.
Monthly recurring revenue = active customers × recurring charge after recurring discount. Annual-billed charge is divided by 12. Annual recurring revenue = monthly recurring revenue × 12. Setup charges and profit are separate.
Review the example assumptions and results
- Active customers
- 100
- Recurring plan charge
- 10 $
- Annual billing (0 or 1)
- 0
- Recurring discount
- 0 %
- Monthly recurring revenue
- 1000 $
- Annual recurring revenue
- 12000 $
How this tool works
Adjust the labeled inputs to see a new calculation. Units and assumptions are shown beside each field. Printed and copied results use the same calculation.
Example content is illustrative. Free results do not require signup.
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