Logo for the integration

How to Calculate Monthly Recurring Revenue in Xero

Making the most of your Xero data

What is Monthly Recurring Revenue?

Monthly Recurring Revenue (MRR) is the total amount of recurring revenue your company has generated from your customers in a given month.

MRR is calculated by adding up the revenue of all your customers in a month, then dividing that number by the number of months in that month.

For example, if you have 100 customers in January and each of them pays you $10 a month, your MRR for January is $1,000.

MRR is a very important metric to track because it shows how much money your company is making from its existing customers.

MRR is also a very important metric for investors to look at because it shows how much money your company is making from its existing customers.

How do you calculate Monthly Recurring Revenue in Xero?

It can be difficult to calculate Monthly Recurring Revenue directly inside of Xero; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your Monthly Recurring Revenue.

What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Monthly Recurring Revenue. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

A comparison of formulae in Excel and Causal

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

A gif showing how users can adjust model inputs, and how they're reflected in dashboards

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Monthly Recurring Revenue.

A gif showing how you can build visuals in Causal

Start building models with your 

Xero

 data

Thanks! We'll be in touch soon.
Oops! Something went wrong while submitting the form.