How To Calculate MRR in Nextiva | Arithmix

Calculating MRR (Monthly Recurring Revenue) is an essential metric for any business that offers subscription-based services. It helps you understand your revenue stream and predict future growth. In this article, we will discuss what MRR is, why it's valuable to calculate it, and how to calculate it in Nextiva.

What Is MRR?

MRR is the amount of revenue that a business generates from its subscription-based services on a monthly basis. It's a critical metric for SaaS (Software as a Service) businesses, as it helps them track their revenue growth and predict future revenue streams. MRR is calculated by multiplying the number of subscribers by the monthly subscription fee.

For example, if a business has 100 subscribers paying $50 per month, its MRR would be $5,000. MRR is a more accurate representation of a business's revenue stream than total revenue because it accounts for recurring revenue from subscriptions.

When Is It Valuable To Calculate MRR?

Calculating MRR is valuable for any business that offers subscription-based services. It helps businesses understand their revenue stream, predict future growth, and make informed decisions about pricing and marketing strategies. MRR is also a key metric for investors and stakeholders who want to understand the financial health of a business.

For SaaS businesses, MRR is particularly important because it helps them understand their customer lifetime value (CLV). CLV is the total amount of revenue that a business can expect to generate from a customer over the course of their relationship. By calculating MRR and tracking customer churn (the rate at which customers cancel their subscriptions), SaaS businesses can estimate their CLV and make informed decisions about customer acquisition and retention.

How to Calculate MRR in Nextiva

Nextiva is a cloud-based communication and collaboration platform that offers subscription-based services. To calculate MRR in Nextiva, follow these steps:

1. Log in to your Nextiva account and navigate to the Billing tab.
2. Click on the Invoices tab and select the date range for which you want to calculate MRR.
3. Export the invoice data to a CSV file.
4. Open the CSV file in a spreadsheet program (such as Microsoft Excel or Google Sheets).
5. Filter the data to show only subscription-based services.
6. Count the number of subscribers for each service.
7. Multiply the number of subscribers by the monthly subscription fee for each service.
8. Add up the total revenue from all subscription-based services to get your MRR.

It's important to note that MRR is a dynamic metric that can change over time. As customers subscribe or cancel their subscriptions, your MRR will fluctuate. That's why it's important to calculate MRR regularly and track changes over time.

In conclusion, calculating MRR is a valuable metric for any business that offers subscription-based services. It helps businesses understand their revenue stream, predict future growth, and make informed decisions about pricing and marketing strategies. By following the steps outlined above, you can easily calculate MRR in Nextiva and track changes over time.

How Do You Calculate MRR in Nextiva

Nextiva 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 Nextiva 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 Nextiva, 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 Nextiva 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 Nextiva 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.