MetricsCube - Documentation
Back Home
Sign in Start Now

Billing

FAQ

    # Billing

    # Monthly Recurring Revenue (MRR)

    Expected monthly revenue from your subscriptions. Calculated based on the recurring price of your active and paid services, domains, addons and recurring billable items.

    Formula:

    [MRR = Sum of all monthly fees paid by your customers]

    Example 1:
    An annual service priced at $120 results in an MRR of $10 (120 ÷ 12 months).
    For for semi-annual billing the amount is divided by 6, quarterly by 3 and so on. The same logic applies to domains and addons.

    Not included in MRR: one-time fees (e.g., Setup Fee, Late Fee) and taxes, custom invoices.
    Included in MRR: payments made with Credits.

    By default, MRR is calculated from services with the statuses Active and Suspended. In the application settings, you can customize how MRR is calculated. You can disable the option "MRR Calculation Based On Active Services" to limit MRR to services within a Grace Period. After the grace period expires, unpaid services with Active or Suspended status, will no longer count as active subscriptions. As a result, their MRR value will be excluded.

    Where to find this setting:
    Settings → My Applications → [selected application] → MRR Calculation Settings

    Example 2:
    Date: September 1, 2025
    Service: due on August 18, 2025, currently Suspended.

    If MRR Calculation Based on Active Services is enabled, the service is still included in MRR.
    If this option is disabled, and the Grace Period is set to fewer than 14 days, the service is treated as Churn, and its MRR is excluded.

    # Annual Recurring Revenue (ARR)

    • Annual Revenue Rate (ARR) is a report showing the data like the Monthly Recurring Revenue (MRR) but for a full year instead.
      Formula:
    [ARR = MRR x 12]

    # Average Revenue Per User (ARPU)

    ARPU (Average Revenue Per User) – the expected average revenue from active customers.
    It is calculated using the formula:

    [ARPU = MRR / number of active clients]

    Active Clients also include customers with One Time and Free services.

    Example:

    • Customer A – has a recurring service for $90 USD
    • Customer B – has a free service
    • Customer C – has a One Time service for $100 USD

    In this case:

    • MRR = $90 USD
    • Active Customers = 3
    • ARPU = 90 / 3 = $30 USD

    # Average Revenue Per Paying User (ARPPU)

    An expected amount of average revenue from your active paying customers.
    This metric is calculated using the following formula:

    [ARPPU = Monthly Recurring Revenue (MRR) / Number of active paying customers]

    Active paying customers include only those with recurring services, addons, domains and items. A customer is counted only if their invoices are greater than 0. Customers with One-Time or Free billing cycles are not included in this count.

    Example:

    • Customer A – has a recurring service for $90
    • Customer B – has a free service
    • Customer C – has a One Time service for $100

    In this case, the ARPPU is calculated as:

    • MRR = $90 USD
    • Active Paying Customers = 1
    • ARPPU = 90 / 1 = $90 USD

    # Customer Lifetime Value (LTV)

    An average estimated value of a customer through their whole life span formed on the existing customer base. This is an average calculation based on ARPU and Churn Rate. This metric may not be very "realistic" for a small sample of data (less customers than 100 is going to have a very variable Churn Rate).
    Formula:

    [LTV = ARPU (Average Revenue Per User) / Customer Churn Rate]

    Example:

    • If your ARPU is $10 (as in the examples above)
    • You have 10 active clients now
    • You had 5 clients leaving in the last 30 days
    • This means that your Churn Rate is 50% (5 clients lost / 10 clients in total now)
    • In such case your LTV is $20 ($10/0.5). In other words your customer leaves you $20 in average during their lifespan at your company.

    # Paying Customer Lifetime Value (PLTV)

    This report is almost the same as Customer Lifetime Value (LTV) but the calculation is based only on the paid customers so it's based on ARPPU and Churn Rate.
    Formula:

    [PLTV = ARPPU (Average Revenue Per Paying User) / Customer Churn Rate]

    # Revenue

    The Revenue report tracks the total revenue generated from paid invoices. It provides a comprehensive view of your financial performance, helping you analyze revenue sources and visualize revenue trends over time.

    # Calculation Rules

    Revenue is calculated from paid invoices covering products, addons, domains, and billable items. All amounts are calculated after applying promotional codes and client group discounts, and they include taxes. In multi-currency environments, amounts in foreign currencies are converted using the exchange rate valid on the payment date.

    The Revenue report includes custom invoices, late fees, and setup fees. Setup Fees are included directly in the total revenue of the product they are associated with.

    Using the Revenue by... dropdown above the main table, you can dynamically segment your total revenue by one of the following dimensions: Product Groups, Products, Addons, TLDs, Billing Cycles, Client Countries, or Client Groups.

    If you want to analyze income generated outside of standard product subscriptions, select Other from the dropdown menu. This view isolates and breaks down revenue generated from Custom Invoices, Billable Items, and Late Fees.

    • Excluded from Revenue: Payments made using Account Credit.
    • Account Credit Note: If an invoice is partially paid using the client's account balance, the credited amount is proportionally deducted from each invoice item. Only new monetary revenue is included in the report.

    Example of Proportional Credit Deduction: As shown in the example invoice below, the total Gross Amount is $35.99, consisting of several items. The client uses $4.01 of Account Credit, leaving a real payment (new revenue) of $31.98. The system calculates the ratio of the actual payment to the total invoice amount ($31.98 ÷ $35.99 ≈ 88.85%).

    This percentage is then applied to the gross amount of each individual invoice item to determine its revenue contribution:

    • Item 1 (Setup Fee): Gross Amount $1.00 → Revenue: $0.89
    • Item 2 (Product): Gross Amount $10.00 → Revenue: $8.89
    • Item 3 (Addon): Gross Amount $13.09 → Revenue: $11.63
    • Item 4 (Domain): Gross Amount $11.90 → Revenue: $10.57

    Note: The sum of these individual revenue amounts equals the total new revenue of $31.98. In the final report, the Setup Fee revenue is combined with the revenue of its associated product.

    # Net Revenue

    Net Revenue based on paid invoices in your system excluding gateway fees and taxes.

    # Revenue Per Billing Cycle

    The Revenue per Billing Cycle report tracks revenue generated from paid invoices, grouped by client subscription frequencies. It helps analyze which billing models generate the most revenue and visualizes revenue trends over time.

    Revenue is calculated from paid invoices covering products, addons, domains, and billable items. All amounts include taxes.

    • Excluded from Revenue: custom invoices, late fees, and payments made using Account Credit.
    • Account Credit Note: If an invoice is partially paid using the client's account balance, the credited amount is proportionally deducted from each invoice item. Only new monetary revenue is included in the report.

    The total calculated revenue is displayed below the chart for each compared period.

    The main table breaks down revenue using two dimensions simultaneously. While the rows represent billing cycles (Monthly, Quarterly, Annually, Biennially, Triennially, One Time, etc.), the data is further segmented by a secondary dimension. Using the Revenue per Billing Cycle by dropdown, you can change this secondary grouping to:

    • Product Groups
    • Products
    • Addons
    • TLDs
    • Client Countries
    • Client Groups

    Note: If you want to view the total revenue grouped only by billing cycle, without any additional segmentation, see the general Revenue report.