How Does Recurly's MRR Calculation Handle Prorated Charges?

The Monthly Recurring Revenue (MRR) calculation in Recurly does not perform a proration calculation. Instead, it normalizes all active subscriptions to a monthly value to provide a predictable revenue figure.

Here’s how the calculation works:

• Monthly Subscriptions: For a monthly subscription, the MRR calculation simply counts the full amount of the charge associated with the active subscription.

• Other Intervals: To normalize subscriptions that are not monthly:

  • For daily subscriptions, the charge is multiplied by 30.

  • For yearly subscriptions, the charge is divided by 12.

  • The MRR calculation looks at all charges associated with active subscriptions and normalizes them in this way.

Example: If a subscription for $100 opens on March 29th with a billing period of March 29th to April 29th, it will contribute $100 to MRR every day within that billing period. The monthly MRR figure in the dashboard simply represents the total MRR on the last day of the month (or the most recent day for the current month).