How To Calculate MRR in Wave Accounting | Arithmix

If you're running a subscription-based business, it's important to keep track of your monthly recurring revenue (MRR). MRR is the amount of revenue you can expect to receive from your customers each month. Calculating MRR can help you understand the health of your business and make informed decisions about growth and pricing strategies. In this article, we'll walk you through how to calculate MRR in Wave Accounting.

What Is MRR?

MRR is a key metric for subscription-based businesses. It represents the total amount of revenue you can expect to receive from your customers each month. To calculate MRR, you need to add up the monthly subscription fees for all of your customers. This includes any recurring charges, such as monthly membership fees or subscription fees for software or services.

Calculating MRR is important because it gives you a clear picture of your business's recurring revenue. This can help you make informed decisions about pricing, growth strategies, and customer acquisition. By tracking your MRR over time, you can see how your business is growing and make adjustments as needed.

When Is It Valuable To Calculate MRR?

Calculating MRR is valuable for any subscription-based business. Whether you're a software company, a membership-based organization, or a service provider, MRR can help you understand the health of your business and make informed decisions about pricing and growth strategies.

If you're just starting out, calculating MRR can help you set realistic revenue goals and track your progress over time. As your business grows, MRR can help you identify opportunities for upselling and cross-selling, as well as potential areas for improvement in your pricing and subscription models.

Overall, calculating MRR is a valuable tool for any subscription-based business. By tracking your monthly recurring revenue, you can gain insights into your business's health and make informed decisions about growth and pricing strategies. With Wave Accounting, calculating MRR is easy and straightforward, allowing you to focus on growing your business and serving your customers.

How Do You Calculate MRR in Wave Accounting

Wave Accounting 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 Wave Accounting 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 Wave Accounting, 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 Wave Accounting 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 Wave Accounting 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.