The base definition
Monthly recurring revenue is the monthly value of active, renewing recurring subscriptions at a point in time. It is not transaction revenue, cash collected, payout value or a currency-converted total.
Normalize before summing
- 01Monthly plan: use the recurring monthly amount
- 02Annual plan: divide the recurring annual amount by 12
- 03Trial: contribute zero until conversion
- 04One-time and usage charges: report separately from basic MRR
- 05Currencies: calculate one MRR total per currency
When renewal is canceled
Marlo excludes a non-renewing subscription from current paying status and MRR from the date Shopify records its scheduled cancellation, even if access continues until the paid-through date. Its subscription and usage components leave current MRR together. Historical payments remain in earnings, and MRR before the cancellation date is preserved.
A later subscription lifecycle event that restores renewal can restore paying status. A quiet usage period alone does not establish cancellation.
Explain the bridge
For any period, the closing value should be explainable from its opening value and named movements.
= Opening MRR
+ New + Expansion + Reactivation
− Contraction − Churn − Frozen movement
The exact frozen-shop convention can vary; the important part is that it is written down and applied consistently.
Keep context nearby
Movement categories become more useful when they are compared with merchant, lifecycle and transaction views for the same period. Marlo keeps those views in one workspace; its MRR movement summary is aggregated rather than a direct record-level drill-through.
- 01Review customers in the selected period
- 02Compare previous and current plan values
- 03Check lifecycle event dates and types
- 04Keep the reporting currency fixed
- 05Preserve exclusions and incomplete-range warnings
Use the method on your own data