Simple Monthly Recurring Revenue Q: Formula to know how much I made in 6 months?

I have a somewhat simple math formula I was wondering if I can get some help with.

- I get 5 customers per week.
- Each month has 4.3 weeks, so I get about 21.5 customers per month.
- Customers pay $10 per month in a subscription service.
- In 6 months, how much revenue would I have made?

I think this has to do with "compounding revenue", thought I'm not completely sure what the math term for it is. The reason I find it tricky is this:

- In month 1, if I get 21.5 customers paying $10/month, that's $215.00.
- In month 2, I would have double the customers, which is $420 for that month. If I add the $215 from the first month, that's $635 revenue.
- I want to know what the formula is, so that I can enter the "Month" in one cell, and then it calcultes it on the final cell.

If you get an additional 21.5 customers a month it would be =21.5*(Months)*10

If your customers double each month it would be =21.5*10*(2^(Months-1)) for the amount made that month

Unless you are asking for the total at that specific month period.

The only way i would know would be to make the "A" column the month number (starting on A2) (down to the furthest desired month) and the "B" column (starting on B2) =B1+(21.5*10*A2) and then auto filling

Originally Posted by FDibbins

Why would you get "double the customers" in month 2? by implication, you would get 6 times the customers in moth 6 and 100 times the cutomers in month 100??? 500 cutomers/week 2150 customers/month?

Sorry, let me explain.

- In month 1, I get 21.5 customers.
- In month 2, I "retain" the original 21.5 customers, and I "obtain" an additional 21.5 customers. In total, I have 43.
- In month 3, I "retain" 43 customers and "obtain" an additional 21.5, etc. etc.

So, my question is: in 6 months, how many customers will I have "retained", and how much revenue would I have generated in total?

I'd like to setup a cell where I can enter the amount of weeks or months, and then calculate how much revenue I would have made in that time span.

Originally Posted by Nate87

If you get an additional 21.5 customers a month it would be =21.5*(Months)*10

If your customers double each month it would be =21.5*10*(2^(Months-1)) for the amount made that month

Sorry, I clarified it in the last post. Each month I'm adding 21.5 customers. SO, I wonder what my total revenue generated after 10 months is.

In month 1, I get 21.5 customers, which is $215.
In month 2, I get 21.5 additional customers, which is 43 customers, $430.
In month 3, I get 21.5 additional customers, which is 64.5 customers, $645.

After 3 months, I generated $215, $430, $645, totaling $1,290.

Is there a formula so that I can input the amount of months into a box, and then get that "total"?

Originally Posted by dluhut

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Where cell A1 is where you input the month (1, 2, ... , 10) etc

Edit: I've uploaded a sample, so you can choose which one you prefer.

Great, thanks! I recall learning about factorials, but this is my first time seeing it in an Excel. What is the difference between "Total Rev" "Revenue Total" and "Sumproduct Formula"?

Originally Posted by dluhut

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Where cell A1 is where you input the month (1, 2, ... , 10) etc

Edit: I've uploaded a sample, so you can choose which one you prefer.

Please excuse the last question. I spent a couple of hours with it and understand it now. Can you update the Excel so that there is "Total Revenue" and "Total Customers". I attached an Excel so it's easier to understand, it's in the blue cells.

Hello Lesoies,

The attached file basically give you 2 options.

The 1st one, which is at the very top, while user input the number of months, it'll calculate the total revenue received from month 1 to the input months.

The 2nd option is basically telling you how much revenue and customer will be in a particular month. It also act as a way of checking to see if option 1 calculation is correct.

As for the update of Excel, I believe I can just write it here (assuming if I get what you meant).

"Total Customer" =$B$10*$A23
"Total Revenue" = $B23 * $B$11

Originally Posted by dluhut

Hello Lesoies,

The attached file basically give you 2 options.

The 1st one, which is at the very top, while user input the number of months, it'll calculate the total revenue received from month 1 to the input months.

The 2nd option is basically telling you how much revenue and customer will be in a particular month. It also act as a way of checking to see if option 1 calculation is correct.

As for the update of Excel, I believe I can just write it here (assuming if I get what you meant).

"Total Customer" =$B$10*$A23
"Total Revenue" = $B23 * $B$11

Yes, that works. Thank you!

Try to copy and paste the following into excel (in A1) and that should give you the required results: i.e. Enter No. of Months and it should tell you the total income.
Weeks in a month 4.3
Customers per week 5
Fee/ Month 10
Enter Months 5
Amount =B1*B2*B3*B4

Hi, sorry to revisit an old thread. I had one last cell that wasn't updating and was wondering if you could help?

In B11, if I change the Average Subscription Cost from $10 to $20, every cell changes correctly except for D23.

D23 reads: =SUMPRODUCT(B23*(ROW(INDIRECT("1:"&$A$23))))
And it doesn't appear to take into account B11.

Thanks.

Originally Posted by dluhut

Hello Lesoies,

The attached file basically give you 2 options.

The 1st one, which is at the very top, while user input the number of months, it'll calculate the total revenue received from month 1 to the input months.

The 2nd option is basically telling you how much revenue and customer will be in a particular month. It also act as a way of checking to see if option 1 calculation is correct.

As for the update of Excel, I believe I can just write it here (assuming if I get what you meant).

"Total Customer" =$B$10*$A23
"Total Revenue" = $B23 * $B$11

Sorry I was mistaken, I got it. Thanks!

There is no such direct formula but you can calculate it manually as it may happen that you customers can increase or decrease.In that case no formula will work but instead if you want to calculate then you can take the minimum amount by day you have earned and the minimum amount of customers you have and then multiply it with 30 and then to 6. You will get your estimated minimum amount that you have earned. Definitely you will earn more than this....