What is MRR (monthly recurring revenue)?

MRR — monthly recurring revenue — is the predictable revenue a subscription business expects in a typical month, with every plan normalized to a monthly figure so cadences that differ (weekly, monthly, quarterly) can be added together. It is a run-rate, not a cash figure: it describes what the current book of subscriptions is worth per month, not what was collected last month.

#Why normalization matters

A weekly box and a quarterly box cannot be summed as they are. Each subscription's per-cycle value has to be converted to a monthly equivalent first, or a store that sells both will read its own revenue wrong.

#How WallaB.AI computes MRR

For each active subscription, WallaB sums the current price times quantity across its lines, then scales that per-cycle amount by 30 divided by the subscription's interval in days. An interval is its count times its unit (a day counts as 1, a week as 7, a month as 30), so a $40 order every two weeks contributes about $85.71 a month. A subscription with no selling plan is treated as monthly.

Two deliberate consequences:

• Paused subscriptions are excluded from the headline number, because they are not billing.
• The monthly history series is an approximation. It values earlier months at current line prices and counts a subscription in any month it existed and was not yet cancelled. Pause history is not recorded, so the current-month point can sit slightly above the headline figure.

MRR is reported alongside average subscription value, churn rate, and save rate on the merchant dashboard.