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How is MRR calculated using Upfront product?

  • 24 March 2022
  • 2 replies
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Userlevel 1
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How MRR is calculated for Upfront based products?

For example, I have a product (iOS) of 1 month upfront for $1 and then after the first month $49.99 yearly.

 

Just want to make sure I have the right insights on dashboard.

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Best answer by tina 28 March 2022, 18:00

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Userlevel 5
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Hey @Adir Kol 

Upfront based products will be calculated into MRR as normal. Since your product is $1 upfront for 1 month, it will contribute $1 to the first month’s MRR, then the yearly price will be normalized to a 1-month period. For example, let’s say Alice paid $1 upfront in February and renewed the yearly subscription in March. She will contribute $1 in MRR for February, then $4.17 for March.

Userlevel 1
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Hi @tina 

Thank you for you answer.

 

BUT - lately it seems like I have many more users with Upfront products, and the MRR goes way up, and the revenue goes way down. If your calculation is true, this scenario can’t be exists.

Can you please double-check with the R&D that this is the actual MRR calculation for the Upfront product?

 

Thank you,

Adir

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