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Mistake 2. Subtracting transaction fees and late fees. It's common for company founders to subtract transaction fees or late fees from their MRR totals, aiming for greater accuracy. Even with good intentions, the final results won't be entirely accurate. Late fees are a gray area between churn and active fees, especially if the chinese overseas africa database company recovers failed credit card charges. However, in a month-end calculation, a late fee technically disappears because the subscription couldn't be collected. For this purpose, we recommend separating late fees into their own category. This way, you can more accurately measure and reduce the amount of revenue lost each month due to expired or failed credit cards.




Mistake 3. Including one-time payments. Since they are non-recurring, they are not used in calculating MRR. Including them in the calculations will generate revenue expectations and the results will be inaccurate.

Mistake 4. Including testers in your calculations. You should never include testers in your calculations. If you do, you'll have a constant stream of "net new" and "churned" customers, because the reality is that almost 100% of testers don't convert.

Mistake 5. Not including discounts. Another big mistake is not including discounts in your calculations. If you offer a discount to a customer on a $100 plan so they pay $50, the MRR won't be $100, but $50 per month.