Monthly subscription revenue is the total amount of money a business earns from its subscribers on a monthly basis. This revenue is generated from customers who pay a recurring fee to access a product or service. Subscription-based business models are common in industries such as software, media, and telecommunications. The monthly subscription revenue is a critical metric for businesses as it provides a steady and predictable income stream, allowing for better financial planning and growth strategies.
The formula to calculate the monthly subscription revenue is:
\[ R = N \times P \]
Where:
Let's assume the following values:
Using the formula:
\[ R = 500 \times 20 = 10000 \text{ $} \]
The monthly subscription revenue is $10,000.