Monthly Recurring Revenue Movement Chart
This page describes Charts v3.
This chart is also available in our legacy Charts v2. See Charts v2 and v3 differences.
The Monthly Recurring Revenue Movement chart shows how new, churned, and changed subscriptions affect MRR. It decomposes the change in MRR from one period to the next into the following components:
- New MRR: Total MRR increase caused by customers paying for a subscription for the first time in that period.
- Resubscription MRR: Total MRR increase caused by customers resubscribing in that period, after they had previously churned from a paid subscription.
- Expansion MRR: Total MRR increase caused by continuing subscriptions generating more MRR. Examples include switching products, a price increase at renewal, graduating from an offer period to full price, recovering from a billing issue at a higher price, or tax and commission changes for net revenue types.
- Churned MRR: Total MRR removed when paid access ends, a payment is refunded or adjusted downward, or a renewal or billing recovery contributes less MRR than the previous period.
- Contraction MRR: Total MRR removed when a product change causes a subscription to generate less MRR, such as switching to a lower-priced product. For net revenue types, changed tax or commission estimates can also contribute to the difference.
The sum of (New + Resubscription + Expansion) - (Churned + Contraction) yields the net MRR movement from one period to the next.
Learn more about how MRR is calculated here.
Revenue type
The MRR Movement chart allows you to select and visualize three different revenue definitions:
- Revenue: The total monthly recurring revenue that would be generated by the active subscriptions in a given period.
- Revenue (net of taxes): The monthly recurring revenue that would be generated by the active subscriptions in a given period (as defined above), minus our estimate of revenue deducted from the stores for taxes (e.g. VAT, DST, etc).
- Proceeds: The monthly recurring revenue that would be generated by the active subscriptions in a given period (as defined above), minus our estimate of revenue deducted from the stores for taxes and commission.
Proceeds reflect RevenueCat's estimate of what you will earn from the stores for the revenue you generated, but keep in mind that the App Store's payment schedule is based on Apple's Fiscal Calendar, which does not align with calendar months. Learn more here.
In addition, to learn more about how RevenueCat estimates taxes and commissions deducted from the stores, click here.
Available settings
- Filters: Yes
- Segments: No
- Revenue Type: Yes
How to use MRR Movement in your business
Looking at MRR Movement is important to understand the factors that cause your MRR to increase or decrease over a period and give insight into what grows or contracts your business. Add filters to understand how specific subscriber segments are influencing this metric.
FAQs
| Question | Answer |
|---|---|
| How is a new subscription or resubscription assigned to a period for New MRR or Resubscription MRR? | Since MRR is measuring the normalized revenue of paid subscriptions, we use the date of a subscription’s first payment to determine which period to include it within. For subscriptions without a trial, this will equal the start date of the subscription. For subscriptions with a trial, this will equal the date of the subscriber’s trial to paid conversion. |
| How is a product change assigned to a period for Expansion MRR or Contraction MRR? | A product change is assigned to the period it became effective in. Depending on the store and the specific setup, product changes can be effective immediately or at the end of the billing period during which the customer initiated the product change. |
| How is a churned subscription assigned to a period for Churned MRR? | A paid subscription is considered churned once it expires, which may occur at its next expected renewal date if its unsuccessful, or may occur later if a grace period is offered on that subscription. Learn more about how churned subscriptions are defined here. |