Accounting Monthly Recurring Revenue (Per-Unit) Calculator Examples
Worked per-unit MRR examples showing the effect of active units, discounts, and recurring credits on net revenue and annualized run rate.
These worked examples show how unit-based monthly pricing turns into gross MRR, net MRR, net revenue per unit, and an annualized run rate. They use recurring charges only and exclude one-time items.
Example 1: Small team with no reductions
A business bills 25 active seats at $40 per seat each month.
Input Summary
Active billable units
25 seats
Monthly price per unit
$40.00
Average discount rate
0%
Monthly recurring credits
$0.00
Calculation Breakdown
- 1Gross MRR25 × $40.00$1,000.00
- 2Discount amount$1,000.00 × 0%$0.00
- 3Net MRR$1,000.00 − $0.00 − $0.00$1,000.00
- 4Net revenue per unit$1,000.00 ÷ 25$40.00 per seat
- 5Annual run rate$1,000.00 × 12$12,000.00
Result Summary
Discount amount
$0.00
Accounting Monthly Recurring Revenue (Per-Unit) Calculator
Net MRR is $1,000.00, or $40.00 per active seat, with a $12,000.00 annual run rate.
Example 2: Discounted software licenses
A company bills 240 active licenses at $30 per license and has an average recurring discount of 12%.
Input Summary
Active billable units
240 licenses
Monthly price per unit
$30.00
Average discount rate
12%
Monthly recurring credits
$0.00
Calculation Breakdown
- 1Gross MRR240 × $30.00$7,200.00
- 2Discount amount$7,200.00 × 12%$864.00
- 3Net MRR$7,200.00 − $864.00 − $0.00$6,336.00
- 4Net revenue per unit$6,336.00 ÷ 240$26.40 per license
- 5Annual run rate$6,336.00 × 12$76,032.00
Result Summary
Discount amount
$864.00
Accounting Monthly Recurring Revenue (Per-Unit) Calculator
Net MRR is $6,336.00, or $26.40 per license, with a $76,032.00 annual run rate.
Example 3: Per-unit service with credits
A provider bills 500 monitored units at $18 each, applies a 5% average discount, and issues $350 in recurring monthly credits.
Input Summary
Active billable units
500 units
Monthly price per unit
$18.00
Average discount rate
5%
Monthly recurring credits
$350.00
Calculation Breakdown
- 1Gross MRR500 × $18.00$9,000.00
- 2Discount amount$9,000.00 × 5%$450.00
- 3Net MRR$9,000.00 − $450.00 − $350.00$8,200.00
- 4Net revenue per unit$8,200.00 ÷ 500$16.40 per unit
- 5Annual run rate$8,200.00 × 12$98,400.00
Result Summary
Discount amount
$450.00
Accounting Monthly Recurring Revenue (Per-Unit) Calculator
Net MRR is $8,200.00, or $16.40 per active unit, with a $98,400.00 annual run rate.
Example 4: Large account with heavy reductions
A business bills 1,200 units at $75 each, with a 20% average recurring discount and $4,000 of monthly recurring credits.
Input Summary
Active billable units
1,200 units
Monthly price per unit
$75.00
Average discount rate
20%
Monthly recurring credits
$4,000.00
Calculation Breakdown
- 1Gross MRR1,200 × $75.00$90,000.00
- 2Discount amount$90,000.00 × 20%$18,000.00
- 3Net MRR$90,000.00 − $18,000.00 − $4,000.00$68,000.00
- 4Net revenue per unit$68,000.00 ÷ 1,200$56.67 per unit
- 5Annual run rate$68,000.00 × 12$816,000.00
Result Summary
Discount amount
$18,000.00
Accounting Monthly Recurring Revenue (Per-Unit) Calculator
Net MRR is $68,000.00, or $56.67 per unit, with an $816,000.00 annual run rate.
How to Read Your Results
Gross MRR shows the recurring value at standard monthly prices before reductions.
Monthly discount amount shows the estimated effect of the average recurring discount rate.
Net MRR is the recurring monthly estimate after both discounts and recurring credits.
Net revenue per unit is an average; individual units may earn more or less than this amount.
Annual recurring revenue run rate multiplies the current net MRR by 12 and is not a forecast or recognized revenue figure.
Assumptions & Important Notes
- All listed units are active and billed for a full month.
- Discounts and credits recur monthly at the amounts entered.
- The monthly price is the standard pre-discount price for one unit.
- One-time fees, usage overages, taxes, and one-time refunds are excluded.
Related Examples
Frequently Asked Questions
Can I use these examples for per-seat, per-user, or per-license pricing?
Yes. A unit can represent a seat, user, license, device, location, or another recurring billable item.
Should credits be converted into a percentage discount?
No. Enter percentage-based recurring reductions as the discount rate and fixed recurring reductions as monthly credits.
Why is net revenue per unit lower than the list price?
It includes the effect of both the average discount and any recurring credits spread across active units.
What happens when credits exceed discounted gross MRR?
The calculation returns net MRR of zero rather than a negative recurring revenue estimate.
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