How To Calculate MRR in Method CRM | Arithmix

Calculating MRR (Monthly Recurring Revenue) is an essential metric for any business that offers subscription-based services. It helps you understand the revenue you can expect each month, which is crucial for forecasting and planning. In this article, we'll explain what MRR is, why it's valuable to calculate, and how to calculate it in Method CRM.

What Is MRR?

MRR is the amount of revenue a business expects to receive each month from its subscription-based services. It's calculated by multiplying the number of active subscribers by the monthly subscription fee. For example, if you have 100 subscribers paying $50 per month, your MRR would be $5,000.

It's important to note that MRR only includes revenue from recurring subscriptions and not one-time purchases or other sources of revenue. It's also a forward-looking metric, meaning it's based on expected revenue for the upcoming month, not past revenue.

When Is It Valuable To Calculate MRR?

Calculating MRR is valuable for any business that offers subscription-based services, as it provides insight into the expected revenue for the upcoming month. This information is crucial for forecasting and planning, as it allows you to make informed decisions about hiring, marketing, and other business expenses.

MRR is also a key metric for investors and lenders, as it provides a clear picture of a business's recurring revenue stream. This information is essential for determining the value of a business and its potential for growth.

How to Calculate MRR in Method CRM

Method CRM is a powerful tool for managing your subscription-based services and calculating MRR. To calculate MRR in Method CRM, follow these steps:

1. Go to the "Customers" tab and select "Subscriptions."
2. Select the date range for which you want to calculate MRR.
3. Filter the results by subscription status (e.g., active, cancelled, expired).
4. Export the results to a CSV file.
5. Open the CSV file in a spreadsheet program like Excel.
6. Sum the "Monthly Subscription Fee" column to get your total MRR for the selected date range.

It's important to note that Method CRM only includes revenue from recurring subscriptions in its MRR calculation. If you have other sources of recurring revenue, such as maintenance fees or support contracts, you'll need to add those to your MRR calculation manually.

In conclusion, calculating MRR is an essential metric for any business that offers subscription-based services. It provides insight into expected revenue for the upcoming month, which is crucial for forecasting and planning. With Method CRM, calculating MRR is easy and straightforward, allowing you to make informed decisions about your business's future.

How Do You Calculate MRR in Method CRM

Method CRM itself isn’t naturally geared towards letting you calculate complex metrics like MRR. As an alternative, teams typically use products like Arithmix to import data from Method CRM and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Method CRM, combine it with data from other systems, and create calculations like MRR.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating MRR in Arithmix

Calculating metrics like MRR is simple in Arithmix. Once you've created your free account, you’ll be able to import your Method CRM data, and use it to create natural language formulas for metrics like MRR.

Arithmix is designed to give you the power to build any calculations you want on top of your Method CRM data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.