Issue with Incorrect MRR Calculation for Deals with Non-Overlapping Billing Periods
Hi Pipedrive Community,
I’ve encountered an issue with the MRR calculation that I’d like to bring to your attention. Here's the situation:
I added two products to my deal—a 3-month Proof of Concept (PoC) period and a subsequent 9-month period. Each product is priced at €447 per month, and I configured them as recurring payments with 3 and 9 cycles respectively. Since the billing start dates are 11.12.24 for the PoC period and 11.03.25 for the subsequent period, the payments do not overlap. This means the MRR should logically be €447, reflecting the monthly cost of the products.
However, Pipedrive currently calculates the MRR as €894, summing the recurring payments together regardless of their billing start dates.
I reached out to Pipedrive support, and they confirmed that this behavior is expected, as the revenue metrics (including MRR) don’t account for billing start dates. While I understand this approach aligns with certain industry practices, I believe it leads to overestimations in MRR and creates issues for use cases like mine. Specifically, it prevents me from generating accurate quotes to communicate the correct MRR to customers.
I suggest revising the MRR calculation to account for billing start dates, as this would provide a more accurate representation of monthly recurring revenue. A simple adjustment—using the formula MRR = ARR/12, where ARR is correctly calculated based on start dates—could solve the issue.
I hope the Product Team will consider this feedback for future improvements. This change would significantly enhance the tool’s usability for many users, especially in scenarios involving staggered billing periods.
Thank you for your attention, and I look forward to hearing others’ thoughts or updates on this topic!
Best regards,
Diego
Comments
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Hi @Diego_Valoon thank you for your use case. This is quite a specific scenario so I have moved it to the feedback section so our developers can look into it further.
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