One of the foundations of recurring revenue analysis in Fincome relies on tracking MRR (Monthly Recurring Revenue) variations.

Fincome calculates the monthly MRR of each active subscription and automatically detects changes in value, called MRR movements. Each movement corresponds to a net variation of the MRR between two periods, and adding up all of a subscription's past movements reconstitutes its current MRR.

These movements are analyzed in two complementary views:

• "Customer-level" view: evolution of the MRR by customer (the module's historical basis).
• "Product-level" view: breakdown of the MRR by product, making it possible to distinguish upsell with price, volume, and mix effects, from cross-sell, and conversely for downsells.

1. MRR movements – customer level

This view lets you identify the main dynamics of your recurring revenue at the customer level. It groups all the types of movements that affect your overall MRR: new customers, expansions, contractions, churns, etc.

• New: a New movement is recorded when a customer takes out a paid subscription for the first time. This movement reflects the arrival of new monthly recurring revenue from a customer who previously had no MRR.

Typical cases: the first subscription of a never-billed customer, or the activation of a first subscription after a trial period.

• Reactivation: the Reactivation movement occurs when a previously lost customer (a churned customer, i.e. with no active subscription) takes up a paid subscription again.

Typical cases: resuming a subscription (identical or new) after a complete termination, or returning to a paid offer after a pause period.

• Expansion (Upsell): an Expansion movement corresponds to any net increase in MRR for an already active subscription or customer.

Typical cases: switching to a higher plan (upgrade), adding users or add-on modules, the end of a commercial discount, or the same customer taking out an additional subscription (cross-sell).

• Contraction (Downsell): a Contraction corresponds to a decrease in MRR on an active subscription, without that subscription being completely terminated.

Typical cases: downgrading to a lower plan, removing users or options, applying a discount or a credit note, or even a partial termination (for example stopping a secondary subscription).

• Attrition (Churn): the Attrition movement is recorded when a customer's last subscription is terminated, resulting in that customer leaving the active MRR base. Fincome lets you configure the recognition date of this churn.

Typical cases: the end of a commitment period without renewal, the explicit termination of a contract by the customer, or automatic suspension for non-payment (depending on how your billing system works).

• FX (Foreign exchange effect): FX movements correspond to MRR adjustments due to exchange rate variations for subscriptions billed in a foreign currency. The source used by Fincome for FX effects is Open Exchange Rates.

Typical cases: a customer is billed in USD, but your reporting is in EUR; between two periods, the exchange rate fluctuates, resulting in a revaluation (up or down) of the converted MRR.

• Net growth (Net Movement): net growth represents the sum of all the positive and negative MRR movements of a customer (or a customer segment) over a given period. In other words, it is the total variation of the customer's MRR over the considered period, once all the expansions and all the churns are taken into account.

Typical cases: a customer increases an existing subscription (+€100), cancels another one (–€50), and benefits from a one-off credit note (–€20): the net growth of their MRR is therefore +€30 over the period.

2- MRR movements – product level

This second view introduces a breakdown at the product level, ideal for understanding the economic drivers of your growth: price effect, volume effect, and mix effect.

Fincome distinguishes the following movements there (in addition to those stated above, but at the product level):

• Upsell – price effect: an increase in MRR due to a rise in the unit price, with no change in volume. This movement reflects a revenue gain related to a pricing adjustment rather than a change in usage.

Typical cases: a customer goes from a €20 to a €25 per-user plan; a temporary discount ends; new pricing is applied to an equivalent contract.

• Upsell – volume effect: an increase in MRR related to a rise in the quantities consumed or subscribed, at a constant unit price. This movement reflects a natural expansion of product usage.

Typical cases: a customer adds new users to their existing plan; they activate more modules; the billed volume increases (more events, operations, etc.).

• Downsell – price effect: a decrease in MRR due to a drop in the unit price, without a change in volume. This movement reflects a revenue loss related to a pricing adjustment.

Typical cases: a customer benefits from a commercial discount; they move to a lower price grid while keeping the same number of users; the unit price is revised downward at a renewal.

• Downsell – volume effect: a decrease in MRR related to a reduction in volumes or in the scope of usage, at a constant unit price. This movement reflects lower usage or a contract adjustment.

Typical cases: a customer removes licenses; they deactivate modules; the billed volume decreases following lower use of the service.

• Cross-sell: the addition of an extra subscription for another product or service, for a customer who already has at least one active subscription. It is "horizontal" MRR growth, with a customer extending their commitment to a new product without being a new customer.

Typical cases: a customer already subscribed to your SaaS billing offer also subscribes to your advanced reporting module. They remain an existing customer, but generate additional MRR via a new product.

• Product downsell: the opposite of cross-sell. It is the termination of a single subscription for a customer who had several, resulting in an MRR loss on one product without losing the whole customer.

Typical cases: a customer terminates their premium support module but keeps their main subscription. The customer's total MRR decreases, but they are not considered churned.

• Price-volume mix effect: this movement simultaneously combines a volume variation and a price variation on the same subscription. The price-volume mix effect corresponds to the share of the MRR variation resulting from the combination of the two effects (it is generally measured by the product of the simultaneous price variation and volume variation). This breakdown helps quantify the combined impact of a price change accompanied by a change in quantities.

Typical cases: a customer goes from 10 to 15 users (+volume), and at the same time the price per user increases from €20 to €25 (+price). The mix effect represents the combined impact of these two changes, beyond the isolated effect of each variable.

Updated on: 03/07/2026