Documentation Index
Fetch the complete documentation index at: https://docs.bigdelta.com/llms.txt
Use this file to discover all available pages before exploring further.
What is MRR?
MRR is how much money you make every month from subscriptions. Only count money that repeats. If someone pays you $50 every month, that’s $50 MRR. If someone pays $600 for a whole year, divide by 12. That’s $50 MRR. Don’t count one-time payments like setup fees.How to Calculate It
MRR = Amount paid for subscription / number of months in the planExamples:
- $49/month plan → $49 MRR
- $1,200/year plan → $1,200 ÷ 12 = $100 MRR
- $300/quarter plan → $300 ÷ 3 = $100 MRR
Calculation Example
| Customer | Plan | Billing | Price | MRR |
|---|---|---|---|---|
| Acme Corp | Growth | Monthly | $49/mo | $49 |
| Beta Inc | Growth | Annual | $441/yr | $36.75 |
| Gamma LLC | Growth | Monthly | $49/mo | $49 |
| Delta Co | Free | — | $0 | $0 |
How MRR Changes
Your MRR goes up or down for five reasons:| Type | What happened |
|---|---|
| New | New customer signed up |
| Expansion | Existing customer upgraded |
| Contraction | Existing customer contracted |
| Churn | Customer cancelled |
| Reactivation | Old customer came back |
FAQ
MRR vs revenue?
MRR vs revenue?
MRR only counts recurring income. Revenue counts everything — one-time fees, consulting, overages. MRR shows your predictable income.
MRR vs ARR?
MRR vs ARR?
ARR = MRR × 12. Use MRR for monthly tracking. Use ARR for annual planning.
What's a good MRR growth rate?
What's a good MRR growth rate?
It depends on your stage:
- Under $100K MRR: 15–20% month-over-month
- $100K–$1M MRR: 8–12% month-over-month
- Over $1M MRR: 3–5% month-over-month
Why is MRR based on the subscription date, not the charge date?
Why is MRR based on the subscription date, not the charge date?
MRR is tied to when a subscription starts or renews, not when the payment clears. Here’s why:1. It matches revenue to the service period. If a customer subscribes on March 15, that subscription belongs to the period starting March 15 — no matter when the payment actually goes through. MRR answers the question: “How much recurring value are we delivering each month?”2. Charge dates are unreliable. Card payments can fail and retry, invoices can have net-30 terms, and manual payments can land days or weeks late. If MRR followed charge dates, it would jump around for reasons that have nothing to do with your actual business.3. It follows accrual accounting. MRR reflects revenue as it’s earned, not when cash arrives — the same principle used in standard financial reporting.4. It keeps trends comparable. Growth, churn, and expansion rates only mean something if the underlying numbers aren’t distorted by billing quirks.Example. A customer subscribes to a $100/month plan on March 28. The first payment clears the same day. On April 28, the renewal charge fails due to insufficient funds, so the payment processor opens a 7-day grace period and retries. The retry finally succeeds on May 3.
- Subscription date (what Bigdelta uses): $100 counted in April — the customer was still on the plan for the April 28 – May 27 period.
- Charge date: $100 counted in May — making April look like a churn and May look like a spike, even though nothing actually changed about the subscription.