Understanding MRR (Monthly Recurring Revenue) #
MRR is the most important metric for subscription-based digital product businesses. DMSI Analytics calculates and tracks it automatically.
What is MRR? #
MRR is the predictable revenue you expect to receive every month from active subscriptions and recurring license renewals.
Formula:
MRR = Sum of all monthly subscription values for active subscribers
For annual subscriptions, DMSI Analytics normalizes to monthly: Annual price / 12 = Monthly contribution.
How DMSI Analytics Calculates MRR #
- The
Revenue_Calculatorruns each night at 2:00 AM - It queries all active subscriptions from DDLS Core
- It normalizes annual/quarterly subscriptions to monthly values
- It groups by product for the by-product breakdown
- Results are stored in
wp_dmsilm_analytics_metricswith metric namemrr
What the MRR Widget Shows #
| Element | Description |
|---|---|
| Current MRR | This month’s total MRR |
| MRR Change | Dollar and percentage change vs prior month |
| Trend Arrow | Up/down arrow indicating direction |
| MRR History | Line chart of MRR over time |
MRR vs Total Revenue #
| Metric | Description |
|---|---|
| MRR | Recurring subscription/renewal revenue normalized to monthly |
| Total Revenue | All revenue including one-time purchases, non-recurring sales |
A healthy business wants both growing, but MRR is the leading indicator of sustainable growth.