1. Count active paying customers
Use accounts contributing recurring revenue in the selected month.
2. Enter average monthly revenue
Normalize annual and multi-month contracts to one month.
3. Add other recurring revenue
Include stable add-ons not already captured in the average.
4. Subtract lost MRR
Enter recurring value lost from churn or downgrades.
5. Review MRR and ARR
Use the annualized figure as a run rate, not a revenue forecast.