Why Does Recurly Recommend Including Failed Charges in My MRR Calculation?

Recurly's Data team recommends including failed recurring charges in your Monthly Recurring Revenue (MRR) calculation because MRR represents your expected recurring revenue.

For example, if a payment fails and a subscription goes past due, your MRR is not immediately affected. This is because you still expect to eventually receive that money. If the dunning process is unsuccessful and the subscription expires, the amount will then be shown as part of the MRR churn calculation at the time of expiration.