What are Active Subscriptions & How Do They Work?
At the end of each period, Active Subscriptions displays the total number of paid subscriptions (e.g. month). It’s one of the most essential SaaS KPIs since it lets you evaluate how your efforts to reduce churn and acquire new customers are progressing at a glance.
How to Calculate Active Subscriptions
Any subscription that has at least one invoice paid and is in the status=active or status=past due statuses is considered “active.”
Trial subscriptions & overdue subscriptions with the status=unpaid are not included.
This metric would also correspond to the total number of active customers if your company sells exactly one subscription per customer.
What Causes the Active Subscriptions to Change?
This happens when a new or current customer begins a new active membership or upgrades from a free to a paid subscription.
When a paid membership is either canceled, scheduled to be canceled, downgraded to a free subscription, paused, or becomes delinquent, Churn happens. When a new subscription’s trial period expires for a user who hasn’t saved a payment method, the subscription briefly changes from status=trialing to status=active before the first invoice fails to pay, and the subscription becomes status=past due.
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