What is total revenue?

Total revenue is the full amount your business earns from all income sources before expenses are deducted.

In SaaS, this typically includes monthly recurring revenue (MRR) plus any non-recurring revenue—like consulting or onboarding services.

• Formula: Total revenue = recurring revenue + non-recurring revenue

Most SaaS companies generate recurring income through subscriptions or usage-based pricing. But many also offer additional services—like implementation support or training—that bring in variable, one-time revenue.

When you combine these income streams, total revenue gives you a complete picture of how much money your company is bringing in. It reflects both predictable, ongoing revenue and one-off engagements that contribute to growth.

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Total revenue formula + how to calculate

Total revenue plays an essential role in your cash flow analysis, as it gives you an insight into the combined income generated by the company for a given period. Total revenue is broadly calculated by adding the company’s monthly recurring revenue (MRR) and accrued revenue if not included in MRR, as well as any other variable income and non-recurring revenue. The formula is as follows:

From a slightly granular perspective, total revenue calculation considers several factors, from cross-sell or upsell revenue and usage-based revenue to professional services and partner-generated income. So, here’s a comprehensive breakdown of the formula:

• Total Revenue = MRR + Non-recurring Revenue + Usage-Based Revenue + Upsell/Cross-sell Revenue + Professional Services Revenue + Partner/Affiliate Revenue + Other Revenue

Total revenue calculation example

Let’s consider a hypothetical example to illustrate the calculation of total revenue. Consider a SaaS company with subscription plans, one-time setup fees, and other services.

The company’s MRR for January is $25,000 from 500 customers at $50 per month, one-time setup fees are $500 each for ten customers, usage-based revenue is $1,000, professional services revenue is $2,000 from offering customized training to a client, and other revenue adds up to $3,000 grant from a tech research organization for participation in a study.

Here’s how you might calculate its total revenue for that particular month:

• Total Revenue = $25,000 (MRR) + $5,000 (Non-recurring Revenue) + $1,000 (Usage-Based Revenue) + $2,000 (Professional Services Revenue) + $3,000 (Other Revenue) = $36,000

So, in this case, the company’s total revenue for April would be $36,000, representing all the income generated during that specific period.

Factoring total revenue into your business decisions

For SaaS finance leaders, total revenue is a core metric that informs pricing, resource allocation, and product strategy. It’s central to financial planning and analysis (FP&A), helping teams understand overall business health and shaping key performance indicators like customer acquisition cost (CAC).

But revenue, like any metric, only tells part of the story on its own. Strategic decisions require context—and that means looking at total revenue alongside other financial and operational insights.

To get a true view of business performance, your metrics need to live within your broader financial models and statements—not in disconnected spreadsheets. When metrics are siloed or tracked manually, it’s easy to miss trends, duplicate effort, or act on incomplete data.

Modern finance tools can help by connecting directly to your systems of record—like your CRM, ERP, HRIS, billing platform, or accounting software. With integrated, real-time data and prebuilt metrics, finance teams can track total revenue and other performance indicators with more confidence and less manual effort.

That visibility helps you move faster, plan smarter, and focus on what matters: sustainable, strategic growth.

Beyond total revenue: 3 key metrics for SaaS success

Total revenue influences other financial metrics, so it’s important not to look at it in isolation if you want an accurate assessment of a company’s financial health. Below, we suggest three metrics you should monitor alongside total revenue to gain a holistic view of your company’s performance.

1. Monthly recurring revenue (MRR)

Monthly recurring revenue (MRR) gives you a focused look at the steady, predictable income from subscriptions—making it a key input in your total revenue picture. It helps you assess financial health, forecast near-term earnings, and make smart decisions around growth, resourcing, and investment.

While total revenue captures everything—including one-time fees or project-based income—MRR zeroes in on what you can count on month after month. That’s why it’s especially helpful for understanding product-market fit and tracking customer momentum.

That said, MRR is a short-term, point-in-time metric. It offers a snapshot of recurring income but doesn’t tell the whole story. It doesn’t capture seasonal spikes, non-recurring revenue, or long-term sustainability.

In other words, MRR is essential for immediate planning—but it’s most powerful when paired with longer-term metrics like ARR and net revenue retention.

2. Customer lifetime value (CLV)

Customer lifetime value (CLV or CLTV) estimates how much total revenue you can expect from a single customer over the course of the relationship. It accounts for both the length and value of their subscription—giving you a clearer picture of long-term profit potential.

When you track CLTV alongside total revenue, you gain valuable insight into customer behavior and overall business sustainability. It helps you refine acquisition strategies, retention efforts, and resource allocation based on actual customer value—not just short-term gains.

Comparing CLTV to total revenue can also help balance immediate revenue wins with long-term growth opportunities.

3. Churn rate and its impact

Churn rate—also known as customer attrition—measures the percentage of customers or recurring revenue lost during a specific time period. It tells you how many customers cancel or downgrade their subscriptions and how much recurring revenue is affected as a result.

Churn rate has a direct impact on financial health. As churn increases, total revenue and net income typically decline, reflecting a shrinking customer base. Conversely, a declining churn rate signals stronger customer retention and more stable, sustainable growth.

To build a healthy financial model, it’s important to monitor both churn and the metrics that influence it. Beyond customer churn, keep an eye on indicators like net and gross revenue retention, gross dollar retention, and customer lifetime value (CLTV). These metrics help paint a fuller picture of customer loyalty, product/market fit, and overall profitability.

Understanding what drives retention—and where the risks lie—gives your team the insight needed to shape smarter strategies for long-term success.

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Key takeaways

• Total revenue is the comprehensive sum of all business income from primary operations, including monthly recurring revenue and non-recurring income sources.
• The formula for calculating total revenue is straightforward: Total Revenue = Monthly Recurring Revenue + Non-Recurring Revenue. This ensures a complete financial overview.
• For SaaS companies, total revenue encompasses subscription fees, usage-based fees, and other services like consulting or training, reflect the full spectrum of income.
• Tracking total revenue is crucial for financial planning and analysis, aiding in informed decisions about pricing, resource allocation, and growth strategies.

The big picture of revenue tracking

While total revenue is undoubtedly crucial in financial planning, it only tells part of the story. For SaaS success, it’s crucial to consider all key metrics together to fully understand the business and make informed, strategic decisions.

Total revenue FAQs

How often should SaaS companies track total revenue?

Generally, SaaS companies should track total revenue monthly to align with recurring billing cycles and quickly respond to changes. However, performing a more detailed quarterly and annual analysis is essential for a more nuanced understanding of growth and performance.

Is total revenue the same as gross profit?

No, total revenue is not the same as gross profit. Total revenue refers to the total income generated from sales, while gross profit is income leftover after you subtract the COGS (cost of goods sold) from total revenue.