Revenue & Sales
Intermediate

Monthly Recurring Revenue

Monthly recurring revenue is the number of active subscribers times average revenue per user per month.

Formula

MRR=N×ARPUMRR = N \times ARPU

Variables

MRRMonthly recurring revenue
NActive subscribers
ARPUAvg revenue per user / month

Example

500 subscribers × $30: MRR = $15,000

Did You Know?

MRR turns lumpy subscription sales into a predictable monthly figure — the heartbeat of every SaaS business.

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Total Revenue

Basic

Total revenue is the selling price multiplied by the number of units sold.

Net Revenue

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Net revenue is gross revenue less returns, refunds and discounts — the amount actually recognised.

Average Revenue

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Average revenue is total revenue divided by units sold — equal to price per unit in a single-price market.

Marginal Revenue

Intermediate

Marginal revenue is the extra revenue earned from selling one additional unit.

Revenue Growth Rate

Basic

The percentage change in revenue from one period to the next.

Annual Recurring Revenue

Basic

Annual recurring revenue annualises the monthly recurring revenue of a subscription business.