How To Calculate MRR in Odoo | Arithmix
Learn how to calculate Monthly Recurring Revenue (MRR) in Odoo with this comprehensive guide. Discover the key metrics and formulas needed to accurately track your subscription-based business and make informed decisions for growth.
Calculating MRR, or Monthly Recurring Revenue, is an important metric for any business that offers subscription-based services. It helps you understand the health of your business and make informed decisions about growth and investment. In this article, we'll explain what MRR is, when it's valuable to calculate it, and how to do so using Odoo.
What Is MRR?
MRR is the total amount of revenue that a business generates from its subscription-based services each month. This includes all recurring charges, such as monthly fees, usage fees, and add-ons. It's important to note that MRR only includes revenue from active subscriptions, not one-time charges or fees.
MRR is a key metric for subscription-based businesses because it provides a predictable and stable revenue stream. It allows you to forecast revenue and plan for growth, as well as identify areas for improvement in your subscription offerings.
When Is It Valuable To Calculate MRR?
Calculating MRR is valuable for any business that offers subscription-based services, but it's especially important for those that are looking to grow and scale. By understanding your MRR, you can identify trends and patterns in your revenue stream, and make informed decisions about pricing, promotions, and product offerings.
MRR is also useful for investors and stakeholders who are interested in the financial health of your business. It provides a clear picture of your recurring revenue and can help you attract funding or partnerships.
How to Calculate MRR in Odoo
Odoo is a powerful business management software that includes a variety of tools for managing subscriptions and recurring revenue. To calculate MRR in Odoo, follow these steps:
- Go to the Sales app and select Subscriptions from the menu.
- Click on the Reporting tab and select MRR from the dropdown menu.
- You'll see a graph of your MRR over time, as well as a breakdown of your MRR by subscription plan.
- You can also export your MRR data to a CSV file for further analysis.
It's important to note that Odoo calculates MRR based on the start date and end date of each subscription, so it's important to keep these dates accurate and up-to-date in your system.
By regularly calculating and monitoring your MRR in Odoo, you can gain valuable insights into the health of your subscription-based business and make informed decisions about growth and investment.
How Do You Calculate MRR in Odoo
Odoo 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 Odoo 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 Odoo, 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 Odoo 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 Odoo 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.Use Arithmix free