Understanding MRR Calculation in Chargebee

In this video, we will explore how Monthly Recurring Revenue (MRR) is calculated in Chargebee. MRR represents the predictable revenue you expect to earn every month from your active subscriptions. It is derived from recurring subscription components such as plans, add-ons, and coupons.

What is Excluded from MRR?

One-time coupons and charges are not included in the MRR calculation. However, if you wish to include these non-recurring items, you can enable flexible MRR calculation in your Chargebee site.

Accessing MRR Reports

1. Navigate to Revenue Story.

2. Click on Reports Explorer.

3. Find the Total MRR Chart to see how your MRR has changed over time, month by month.

Variants of MRR Charts

• Total Expansion MRR: This shows the monthly recurring revenue earned from upgrades, reactivations, and more.

• Total Cancellation MRR: This indicates the MRR lost due to cancellations.

• Net MRR Growth: This metric defaults to a combo chart. The trend line shows the Net MRR change, while the stacked bar chart illustrates the various components involved in the Net MRR calculation.

Troubleshooting Unexpected MRR Changes

If you notice unexpected changes in your MRR, such as a deep spike or a dip, consider checking for:

• Upgrades

• Downgrades

• Cancellations

• Discounts

Thank you for watching.