Upgrade/Downgrade Calculator 

Created By: Reese Grossman, Ida Khojandpour, Operations Team, Support Team 

Created On: July 17, 2025 

Purpose: 

This document outlines the rationale and process behind using the Upgrade/Downgrade Calculator when creating Salesforce opportunities (and downgrades) for existing customers who are changing their subscription. The goal is to ensure accurate Annual Recurrent Revenue (ARR) reporting by capturing only the net change in subscription value. 

Why This Matters: 

When existing customers change their subscription tier, whether upgrading or downgrading it, it is essential to report only the incremental revenue change to avoid inflating or deflating our overall ARR numbers. 

Package Changes vs. Location Changes

Unlike upgrades or downgrades, where we want to calculate the difference between two package tiers, location adds/removals should always reflect the full ARR impact. 

• Why? Because each location added or removed represents net-new revenue or revenue loss. It is not a modification of an existing package, but an expansion or contraction of service. Treating these as deltas would understate or misrepresent the true ARR change.
   

Example - Upgrade: 

If a client originally signed up on Marqii’s Base package and later upgrades to Professional, we should not record the full value of the Professional package in the new opportunity. 

• Why? Because the Base revenue was already reported when the original deal closed. Booking the full Professional value again would result in over-reporting ARR. 

• Correct approach: Capture only the difference between the Professional and Base packages as the value of the new upgrade opportunity.
   

Example - Downgrade:
If a customer on the Professional package decides to downgrade to Base, this results in a reduction of ARR.

• Correct approach: Enter the negative ARR delta (the change) in the downgrade object. This ensures the decrease in recurring revenue is accurately reflected in reporting.  

By following this method we:

• Keep reporting accurate

• Prevent double counting 

• Provide accurate revenue data to Finance, Billing, and Leadership. 

When to Use the Calculator: 

Use the Upgrade/Downgrade Calculator whenever: 

• A current client changes from one pricing package to another (i.e., Base → Pro, Pro → Kitchen Sync, or Pro → Base). 

• You are creating an opportunity for a customer with an existing active package. 

• You need to determine the net change in ARR to enter in the Salesforce opportunity record.
   

Process Overview

1. Identify the Change

   • Confirm Client’s current active package (with discount %)

   • Determine the new package they are moving to (with discount %)

2. Use the Calculator

   • Navigate to the relevant part of the calculator (i.e., ‘USE FOR PACKAGE UPGRADES’ or ‘USE FOR PACKAGE DOWNGRADES’)

   • Input the customer’s current and new package details, including discount percentages. 

3. Review the Net ARR Change 

   • The calculator will display the difference in ARR between the two packages.

   • This is the amount to enter on the opportunity in Salesforce OR the ARR to enter on the downgrade record. 

4. Create the Record in Salesforce

   • Opportunity Type: Select the relevant type (i.e., Upgrade, Add Location) for an opportunity. 

   • Amount/ARR Field: Use the value from the calculator that denotes the net change.

Questions?

Any questions about using the calculator or tracking ARR changes, please contact the Operations/Billing team.