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A customer currently owns subscription products with a term of 3 years.

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A customer currently owns subscription products with a term of 3 years. A ramped deal was configured to sell the products with a quantity of 20 in year one, 30 in year two, and 40 in year three. The list price of the product is US $1,000 per year.

The subscription started on June 24, 2025, and will end on June 23, 2028. Today’s date is January 15, 2026.

What is the formula to calculate the current Monthly Recurring Revenue (MRR)?

A.

MRR = (20 × $1,000) / 12

B.

MRR = (20 × $1,000) / 36

C.

MRR = ((20 × $1,000) + (30 × $1,000) + (40 × $1,000)) / 36

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