How To Calculate MRR in SugarCRM | Arithmix

Calculating Monthly Recurring Revenue (MRR) is an important metric for any business that offers subscription-based services. It helps you understand your monthly revenue, predict future revenue, and make informed decisions about your business. In this article, we will discuss what MRR is, when it is valuable to calculate MRR, and how to calculate MRR in SugarCRM.

What Is MRR?

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

MRR is an important metric because it provides a predictable and stable revenue stream for businesses. It also helps businesses understand their customer retention rate and identify areas for improvement. By tracking MRR over time, businesses can see if their revenue is growing or declining and make necessary adjustments to their subscription plans.

When Is It Valuable To Calculate MRR?

Calculating MRR is valuable for businesses that offer subscription-based services. It is particularly useful for businesses that have a high customer churn rate or are looking to scale their subscription-based services. MRR can help businesses understand their monthly revenue and predict future revenue, which is important for budgeting and planning purposes.

Additionally, MRR can help businesses identify areas for improvement in their subscription plans. By tracking MRR over time, businesses can see if their revenue is growing or declining and make necessary adjustments to their subscription plans. For example, if a business notices a decline in MRR, they may need to re-evaluate their pricing strategy or improve their customer retention efforts.

How to Calculate MRR in SugarCRM

Calculating MRR in SugarCRM is a straightforward process. First, you need to determine the number of active subscribers and the monthly subscription fee. Once you have this information, you can multiply the two numbers to calculate your MRR.

To determine the number of active subscribers in SugarCRM, you can run a report that shows all active subscriptions. This report should include the subscription start date, end date, and status. You can then filter the report to show only active subscriptions and count the number of records.

Next, you need to determine the monthly subscription fee for each active subscriber. This information should be stored in SugarCRM as a custom field on the subscription record. You can then run a report that shows all active subscriptions and includes the monthly subscription fee.

Finally, you can multiply the number of active subscribers by the monthly subscription fee to calculate your MRR. This calculation can be done manually or using a formula field in SugarCRM.

In conclusion, calculating MRR is an important metric for businesses that offer subscription-based services. It helps businesses understand their monthly revenue, predict future revenue, and identify areas for improvement. By following the steps outlined in this article, businesses can easily calculate MRR in SugarCRM and use this information to make informed decisions about their subscription-based services.

How Do You Calculate MRR in SugarCRM

SugarCRM 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 SugarCRM 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 SugarCRM, 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 SugarCRM 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 SugarCRM 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.