You can designate how much a contract is worth by HubSpot’s default Amount field, manually adding a Deal property, or by Deal Line Items. If you use “Amount” or a Deal property, SaaSGrid can interpret the value of this field in one of three ways:
- MRR: The value of the field is that customer’s MRR for each month of the contract.
- ARR: The value of the field is that customer’s ARR for each month of the contract. MRR= ARR / 12.
- TCV: The value of the field is the total value of the contract. MRR = TCV / the number of months the contract is active. A contract is active for a month if the last day of the month is equal to or between the start date and end date of the contract.
Default Amount field:
Deal properties:
Alternatively, SaaSGrid can compute a contract’s value by summing Deal Line Items.
To compute MRR from your line items, SaaSGrid divides the net price (unit price - unit discount) by the recurring billing frequency and sums across all line items. For example, if a Line Item has an annual billing frequency, your MRR would then be Net Price/12.
Line Items:
Any Deals or Line Items that have a billing frequency of one-time are not included in MRR as it is not considered recurring revenue.