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Question

Clarification on MTR Calculation for Annual Subscriptions

H
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Hi RevenueCat Team,

 

I wanted to clarify how Monthly Tracked Revenue (MTR) is calculated for annual subscriptions.

 

For example, if I sell a $12/year subscription and the user pays the full $12 upfront, does RevenueCat:

1. Count the full $12 in MTR for the month when the transaction happens?

2. Or does it amortize the revenue over 12 months, adding only $1 per month to MTR?

 

Additionally, how does this apply to lifetime purchases? Are they also amortized over a specific duration, or do they count fully in the transaction month?

 

Looking forward to your insights!

2 replies

kaitlin
RevenueCat Staff
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  • kaitlin
  • RevenueCat Staff
  • 365 replies
  • March 6, 2025

Hi ​@himesh-05ef4c,

The answers to this depends on if you’re asking about how this is calculated in our charts and metrics or how it is calculated for pricing and invoices. 

In the charts, for Annual subscriptions, it will be the second option - we normalize the revenue to a one month period and so in the case of your example, it would add $1 per month over 12 months. Non-recurring subscriptions, consumable, or one-time purchases such as a lifetime purchase are actually not calculated in MRR/ARR charts.

If you’re asking regarding how we track MTR for invoicing, then the first option is correct - we’ll consider the revenue of the annual subscription as going towards the month in which it happens, same with a lifetime purchase. 

Let me know if I can clarify anything here!

P
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  • pasc-8abae1
  • New Member
  • 2 replies
  • March 11, 2025

and can I see MTR or ATR somewhere in the dashboards?

P
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    pasc-8abae1

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