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Why is calculating Stripe MRR so difficult?

Blog post from Lago

Post Details
Company
Date Published
Author
Finn Lobsien
Word Count
2,055
Language
English
Hacker News Points
-
Summary

Stripe's API poses challenges in calculating Monthly Recurring Revenue (MRR) independently due to its design, which encourages users to purchase additional tools such as Stripe Sigma or Stripe Data Pipeline for enhanced data access, each adding costs per transaction. Despite Stripe's excellent engineering reputation, its strategy prioritizes profit maximization, making raw data extraction for growing companies cumbersome unless they opt for in-house or third-party solutions. While third-party tools like ChartMogul and ProfitWell exist to address some of Stripe's limitations, they often come with their own costs and are not tailored for usage-based billing models. Open-source billing solutions, such as Lago, offer an alternative by granting full data ownership and the ability to build custom financial queries without relying on costly external tools. As Stripe's model leans towards encouraging upgrades, businesses seeking flexibility in their billing systems might find open-source frameworks more advantageous for managing and analyzing financial data effectively.