profitable 0.2.2 → 0.3.0

checksums.yaml

@@ -1,7 +1,7 @@
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data/Appraisals

@@ -0,0 +1,31 @@
+# frozen_string_literal: true
+
+# Test against Pay 7.x (original minimum supported version)
+appraise "pay-7.3" do
+  gem "pay", "~> 7.3.0"
+  gem "stripe", "~> 12.0"
+end
+
+# Test against Pay 8.x
+appraise "pay-8.3" do
+  gem "pay", "~> 8.3.0"
+  gem "stripe", "~> 13.0"
+end
+
+# Test against Pay 9.x
+appraise "pay-9.0" do
+  gem "pay", "~> 9.0.0"
+  gem "stripe", "~> 13.0"
+end
+
+# Test against Pay 10.x (newly supported version with object column)
+appraise "pay-10.0" do
+  gem "pay", "~> 10.0.0"
+  gem "stripe", "~> 15.0"
+end
+
+# Test against Pay 11.x (latest version as of 2025)
+appraise "pay-11.0" do
+  gem "pay", "~> 11.0"
+  gem "stripe", "~> 18.0"
+end

data/CHANGELOG.md

@@ -1,5 +1,12 @@
 # `profitable`
 
+## [0.3.0] - 2026-01-01
+- Add Pay v10+ support, comprehensive Minitest test suite, and 16 critical bugfixes re: wrong calculations
+
+## [0.2.3] - 2024-09-01
+
+- Fix the `time_to_next_mrr_milestone` estimation and make it accurate to the day
+
 ## [0.2.2] - 2024-09-01
 
 - Improve MRR calculations with prorated churned and new MRR (hopefully fixes bad churned MRR calculations)

data/README.md

@@ -133,7 +133,56 @@ Profitable.mrr # => 123456
 
 ## Development
 
-After checking out the repo, run `bin/setup` to install dependencies. Then, run `rake spec` to run the tests. You can also run `bin/console` for an interactive prompt that will allow you to experiment.
+After checking out the repo, install dependencies:
+
+```bash
+bundle install
+```
+
+### Running Tests
+
+The gem includes a Minitest test suite. Run it with:
+
+```bash
+# Run all tests
+bundle exec rake test
+```
+
+### Testing Against Multiple Pay Gem Versions
+
+This gem uses [Appraisal](https://github.com/thoughtbot/appraisal) to test against multiple versions of the Pay gem, ensuring compatibility across Pay 7.x through 11.x.
+
+**Generate appraisal gemfiles:**
+
+```bash
+bundle exec appraisal install
+```
+
+**Run tests against a specific Pay version:**
+
+```bash
+# Test against Pay 10.x
+bundle exec appraisal pay-10.0 rake test
+
+# Test against Pay 11.x
+bundle exec appraisal pay-11.0 rake test
+```
+
+**Run tests against all Pay versions:**
+
+```bash
+bundle exec appraisal rake test
+```
+
+### Database Compatibility
+
+Tests run on SQLite by default, but the gem supports:
+- PostgreSQL (9.3+)
+- MySQL (5.7.9+)
+- MariaDB (10.2.7+)
+- SQLite (3.9.0+)
+
+The gem automatically detects your database adapter and uses the appropriate JSON query syntax.
 
 To install this gem onto your local machine, run `bundle exec rake install`.
 

data/Rakefile

@@ -1,4 +1,13 @@
 # frozen_string_literal: true
 
 require "bundler/gem_tasks"
-task default: %i[]
+require "rake/testtask"
+
+Rake::TestTask.new(:test) do |t|
+  t.libs << "test"
+  t.libs << "lib"
+  t.test_files = FileList["test/**/*_test.rb"]
+  t.warning = false
+end
+
+task default: :test

data/gemfiles/pay_10.0.gemfile

@@ -0,0 +1,22 @@
+# This file was generated by Appraisal
+
+source "https://rubygems.org"
+
+gem "rake", "~> 13.0"
+gem "pay", "~> 10.0.0"
+gem "stripe", "~> 15.0"
+
+group :development do
+  gem "appraisal", "~> 2.5"
+end
+
+group :test do
+  gem "minitest", "~> 5.0"
+  gem "minitest-reporters", "~> 1.6"
+  gem "mocha", "~> 2.1"
+  gem "activerecord", ">= 7.0"
+  gem "actionview", ">= 7.0"
+  gem "sqlite3"
+end
+
+gemspec path: "../"

data/gemfiles/pay_11.0.gemfile

@@ -0,0 +1,22 @@
+# This file was generated by Appraisal
+
+source "https://rubygems.org"
+
+gem "rake", "~> 13.0"
+gem "pay", "~> 11.0"
+gem "stripe", "~> 18.0"
+
+group :development do
+  gem "appraisal", "~> 2.5"
+end
+
+group :test do
+  gem "minitest", "~> 5.0"
+  gem "minitest-reporters", "~> 1.6"
+  gem "mocha", "~> 2.1"
+  gem "activerecord", ">= 7.0"
+  gem "actionview", ">= 7.0"
+  gem "sqlite3"
+end
+
+gemspec path: "../"

data/gemfiles/pay_7.3.gemfile

@@ -0,0 +1,22 @@
+# This file was generated by Appraisal
+
+source "https://rubygems.org"
+
+gem "rake", "~> 13.0"
+gem "pay", "~> 7.3.0"
+gem "stripe", "~> 12.0"
+
+group :development do
+  gem "appraisal", "~> 2.5"
+end
+
+group :test do
+  gem "minitest", "~> 5.0"
+  gem "minitest-reporters", "~> 1.6"
+  gem "mocha", "~> 2.1"
+  gem "activerecord", ">= 7.0"
+  gem "actionview", ">= 7.0"
+  gem "sqlite3"
+end
+
+gemspec path: "../"

data/gemfiles/pay_8.3.gemfile

@@ -0,0 +1,22 @@
+# This file was generated by Appraisal
+
+source "https://rubygems.org"
+
+gem "rake", "~> 13.0"
+gem "pay", "~> 8.3.0"
+gem "stripe", "~> 13.0"
+
+group :development do
+  gem "appraisal", "~> 2.5"
+end
+
+group :test do
+  gem "minitest", "~> 5.0"
+  gem "minitest-reporters", "~> 1.6"
+  gem "mocha", "~> 2.1"
+  gem "activerecord", ">= 7.0"
+  gem "actionview", ">= 7.0"
+  gem "sqlite3"
+end
+
+gemspec path: "../"

data/gemfiles/pay_9.0.gemfile

@@ -0,0 +1,22 @@
+# This file was generated by Appraisal
+
+source "https://rubygems.org"
+
+gem "rake", "~> 13.0"
+gem "pay", "~> 9.0.0"
+gem "stripe", "~> 13.0"
+
+group :development do
+  gem "appraisal", "~> 2.5"
+end
+
+group :test do
+  gem "minitest", "~> 5.0"
+  gem "minitest-reporters", "~> 1.6"
+  gem "mocha", "~> 2.1"
+  gem "activerecord", ">= 7.0"
+  gem "actionview", ">= 7.0"
+  gem "sqlite3"
+end
+
+gemspec path: "../"

data/lib/profitable/json_helpers.rb

@@ -0,0 +1,68 @@
+# frozen_string_literal: true
+
+module Profitable
+  module JsonHelpers
+    # Regex patterns for validating SQL identifiers to prevent SQL injection
+    # Only allows: alphanumeric characters, underscores, and dots (for table.column format)
+    VALID_TABLE_COLUMN_PATTERN = /\A[a-zA-Z_][a-zA-Z0-9_.]*\z/
+    VALID_JSON_KEY_PATTERN = /\A[a-zA-Z_][a-zA-Z0-9_]*\z/
+
+    # Returns the appropriate JSON extraction syntax for the current database adapter
+    # Supports PostgreSQL, MySQL (5.7.9+), and SQLite
+    #
+    # @param table_column [String] The table and column name (e.g., 'pay_charges.object')
+    # @param json_key [String] The JSON key to extract (e.g., 'paid', 'status')
+    # @return [String] Database-specific SQL for JSON extraction
+    # @raise [ArgumentError] if table_column or json_key contain invalid characters
+    #
+    # @example PostgreSQL
+    #   json_extract('pay_charges.object', 'paid')
+    #   # => "pay_charges.object ->> 'paid'"
+    #
+    # @example MySQL
+    #   json_extract('pay_charges.object', 'paid')
+    #   # => "JSON_UNQUOTE(JSON_EXTRACT(pay_charges.object, '$.paid'))"
+    #
+    # @example SQLite
+    #   json_extract('pay_charges.object', 'paid')
+    #   # => "json_extract(pay_charges.object, '$.paid')"
+    def json_extract(table_column, json_key)
+      # Validate inputs to prevent SQL injection
+      validate_table_column!(table_column)
+      validate_json_key!(json_key)
+
+      adapter = ActiveRecord::Base.connection.adapter_name.downcase
+
+      case adapter
+      when /postgres/
+        "#{table_column} ->> '#{json_key}'"
+      when /mysql/, /trilogy/
+        # MySQL 5.7.9+ supports JSON_EXTRACT and ->> operator
+        # We use JSON_UNQUOTE(JSON_EXTRACT()) for maximum compatibility
+        "JSON_UNQUOTE(JSON_EXTRACT(#{table_column}, '$.#{json_key}'))"
+      when /sqlite/
+        "json_extract(#{table_column}, '$.#{json_key}')"
+      else
+        # Fallback to PostgreSQL syntax for unknown adapters
+        Rails.logger.warn("Unknown database adapter '#{adapter}' for JSON extraction. Falling back to PostgreSQL syntax.")
+        "#{table_column} ->> '#{json_key}'"
+      end
+    end
+
+    private
+
+    def validate_table_column!(table_column)
+      unless table_column.is_a?(String) && table_column.match?(VALID_TABLE_COLUMN_PATTERN)
+        raise ArgumentError, "Invalid table_column format: #{table_column.inspect}. " \
+          "Must be alphanumeric with underscores/dots only (e.g., 'pay_charges.object')."
+      end
+    end
+
+    def validate_json_key!(json_key)
+      unless json_key.is_a?(String) && json_key.match?(VALID_JSON_KEY_PATTERN)
+        raise ArgumentError, "Invalid json_key format: #{json_key.inspect}. " \
+          "Must be alphanumeric with underscores only (e.g., 'paid', 'status')."
+      end
+    end
+  end
+end

data/lib/profitable/mrr_calculator.rb

@@ -27,9 +27,13 @@ module Profitable
     end
 
     def self.process_subscription(subscription)
-      return 0 if subscription.nil? || subscription.data.nil?
+      return 0 if subscription.nil?
+      return 0 if subscription_data(subscription).nil?
 
-      processor_class = processor_for(subscription.customer_processor)
+      # Get processor from virtual attribute (set by .select() in queries) or from customer association
+      processor_name = subscription.try(:customer_processor) || subscription.customer&.processor
+
+      processor_class = processor_for(processor_name)
       mrr = processor_class.new(subscription).calculate_mrr
 
       # Ensure MRR is a non-negative number
@@ -39,6 +43,12 @@ module Profitable
       0
     end
 
+    # Pay gem v10+ stores Stripe objects in the `object` column,
+    # while older versions used `data`. This method provides backwards compatibility.
+    def self.subscription_data(subscription)
+      subscription.try(:object) || subscription.try(:data)
+    end
+
     def self.processor_for(processor_name)
       case processor_name
       when 'stripe'

data/lib/profitable/processors/base.rb

@@ -13,22 +13,45 @@ module Profitable
 
       protected
 
+      # Pay gem v10+ stores Stripe objects in the `object` column,
+      # while older versions used `data`. This method provides backwards compatibility.
+      def subscription_data
+        subscription.try(:object) || subscription.try(:data)
+      end
+
+      # Converts a billing amount to its monthly equivalent rate.
+      #
+      # Uses floating-point arithmetic for precision during calculation,
+      # then rounds to the nearest integer cent at the end. This approach
+      # ensures accurate rounding for fractional results (e.g., $100/year = $8.33/month = 833 cents).
+      #
+      # @param amount [Integer, String] The billing amount in cents
+      # @param interval [String] The billing interval ('day', 'week', 'month', 'year')
+      # @param interval_count [Integer, String] How many intervals per billing cycle
+      # @return [Integer] The monthly amount in cents (always a non-negative integer)
       def normalize_to_monthly(amount, interval, interval_count)
         return 0 if amount.nil? || interval.nil? || interval_count.nil?
 
-        case interval.to_s.downcase
+        # Ensure interval_count is converted to integer before division
+        interval_count_int = interval_count.to_i
+        return 0 if interval_count_int.zero?
+
+        # Calculate using floats for precision, round at the end for integer cents
+        monthly_amount = case interval.to_s.downcase
         when 'day'
-          amount * 30.0 / interval_count
+          amount.to_f * 30 / interval_count_int
         when 'week'
-          amount * 4.0 / interval_count
+          amount.to_f * 4 / interval_count_int
         when 'month'
-          amount / interval_count
+          amount.to_f / interval_count_int
         when 'year'
-          amount / (12.0 * interval_count)
+          amount.to_f / (12 * interval_count_int)
         else
           Rails.logger.warn("Unknown interval for MRR calculation: #{interval}")
           0
         end
+
+        monthly_amount.round  # Return integer cents
       end
     end
   end

data/lib/profitable/processors/braintree_processor.rb

@@ -2,10 +2,15 @@ module Profitable
   module Processors
     class BraintreeProcessor < Base
       def calculate_mrr
-        amount = subscription.data['price']
+        data = subscription_data
+        return 0 if data.nil?
+
+        amount = data['price']
+        return 0 if amount.nil?
+
         quantity = subscription.quantity || 1
-        interval = subscription.data['billing_period_unit']
-        interval_count = subscription.data['billing_period_frequency'] || 1
+        interval = data['billing_period_unit']
+        interval_count = data['billing_period_frequency'] || 1
 
         normalize_to_monthly(amount * quantity, interval, interval_count)
       end

data/lib/profitable/processors/paddle_billing_processor.rb

@@ -2,15 +2,30 @@ module Profitable
   module Processors
     class PaddleBillingProcessor < Base
       def calculate_mrr
-        price_data = subscription.data['items']&.first&.dig('price')
-        return 0 if price_data.nil?
+        data = subscription_data
+        return 0 if data.nil?
 
-        amount = price_data['unit_price']['amount']
-        quantity = subscription.quantity || 1
-        interval = price_data['billing_cycle']['interval']
-        interval_count = price_data['billing_cycle']['frequency']
+        items = data['items']
+        return 0 if items.nil? || items.empty?
 
-        normalize_to_monthly(amount * quantity, interval, interval_count)
+        # Sum MRR from ALL subscription items
+        total_mrr = 0
+
+        items.each do |item|
+          price_data = item['price']
+          next if price_data.nil?
+
+          amount = price_data.dig('unit_price', 'amount')
+          next if amount.nil?
+
+          item_quantity = item['quantity'] || 1
+          interval = price_data.dig('billing_cycle', 'interval')
+          interval_count = price_data.dig('billing_cycle', 'frequency')
+
+          total_mrr += normalize_to_monthly(amount * item_quantity, interval, interval_count)
+        end
+
+        total_mrr
       end
     end
   end

data/lib/profitable/processors/paddle_classic_processor.rb

@@ -2,9 +2,14 @@ module Profitable
   module Processors
     class PaddleClassicProcessor < Base
       def calculate_mrr
-        amount = subscription.data['recurring_price']
+        data = subscription_data
+        return 0 if data.nil?
+
+        amount = data['recurring_price']
+        return 0 if amount.nil?
+
         quantity = subscription.quantity || 1
-        interval = subscription.data['recurring_interval']
+        interval = data['recurring_interval']
         interval_count = 1 # Paddle Classic doesn't have interval_count
 
         normalize_to_monthly(amount * quantity, interval, interval_count)

data/lib/profitable/processors/stripe_processor.rb

@@ -2,18 +2,34 @@ module Profitable
   module Processors
     class StripeProcessor < Base
       def calculate_mrr
-        subscription_items = subscription.data['subscription_items']
+        data = subscription_data
+        return 0 if data.nil?
+
+        # Pay gem v10+ stores items at object['items']['data']
+        # Older versions stored at data['subscription_items']
+        subscription_items = data.dig('items', 'data') || data['subscription_items']
         return 0 if subscription_items.nil? || subscription_items.empty?
 
-        price_data = subscription_items[0]['price']
-        return 0 if price_data.nil?
+        # Sum MRR from ALL subscription items (not just the first one)
+        # Stripe subscriptions can have multiple line items
+        total_mrr = 0
+
+        subscription_items.each do |item|
+          price_data = item['price'] || item
+          next if price_data.nil?
+
+          amount = price_data['unit_amount']
+          next if amount.nil?
+
+          # Each item can have its own quantity
+          item_quantity = item['quantity'] || 1
+          interval = price_data.dig('recurring', 'interval')
+          interval_count = price_data.dig('recurring', 'interval_count') || 1
 
-        amount = price_data['unit_amount']
-        quantity = subscription.quantity || 1
-        interval = price_data.dig('recurring', 'interval')
-        interval_count = price_data.dig('recurring', 'interval_count') || 1
+          total_mrr += normalize_to_monthly(amount * item_quantity, interval, interval_count)
+        end
 
-        normalize_to_monthly(amount * quantity, interval, interval_count)
+        total_mrr
       end
     end
   end

data/lib/profitable/version.rb

@@ -1,5 +1,5 @@
 # frozen_string_literal: true
 
 module Profitable
-  VERSION = "0.2.2"
+  VERSION = "0.3.0"
 end

data/lib/profitable.rb

@@ -6,6 +6,7 @@ require_relative "profitable/engine"
 
 require_relative "profitable/mrr_calculator"
 require_relative "profitable/numeric_result"
+require_relative "profitable/json_helpers"
 
 require "pay"
 require "active_support/core_ext/numeric/conversions"
@@ -14,6 +15,7 @@ require "action_view"
 module Profitable
   class << self
     include ActionView::Helpers::NumberHelper
+    include Profitable::JsonHelpers
 
     DEFAULT_PERIOD = 30.days
     MRR_MILESTONES = [5, 10, 20, 30, 50, 75, 100, 200, 300, 400, 500, 1_000, 2_000, 3_000, 5_000, 10_000, 20_000, 30_000, 50_000, 83_333, 100_000, 250_000, 500_000, 1_000_000, 5_000_000, 10_000_000, 25_000_000, 50_000_000, 75_000_000, 100_000_000]
@@ -100,24 +102,57 @@ module Profitable
     end
 
     def time_to_next_mrr_milestone
-      current_mrr = (mrr.to_i)/100
+      current_mrr = (mrr.to_i) / 100  # Convert cents to dollars
+      return "Unable to calculate. No MRR yet." if current_mrr <= 0
+
       next_milestone = MRR_MILESTONES.find { |milestone| milestone > current_mrr }
       return "Congratulations! You've reached the highest milestone." unless next_milestone
 
-      growth_rate = calculate_mrr_growth_rate
-      return "Unable to calculate. Need more data or positive growth." if growth_rate <= 0
+      monthly_growth_rate = calculate_mrr_growth_rate / 100
+      return "Unable to calculate. Need more data or positive growth." if monthly_growth_rate <= 0
+
+      # Convert monthly growth rate to daily growth rate
+      daily_growth_rate = (1 + monthly_growth_rate) ** (1.0 / 30) - 1
+      return "Unable to calculate. Growth rate too small." if daily_growth_rate <= 0
+
+      # Calculate the number of days to reach the next milestone
+      days_to_milestone = (Math.log(next_milestone.to_f / current_mrr) / Math.log(1 + daily_growth_rate)).ceil
 
-      months_to_milestone = (Math.log(next_milestone.to_f / current_mrr) / Math.log(1 + growth_rate)).ceil
-      days_to_milestone = months_to_milestone * 30
+      target_date = Time.current + days_to_milestone.days
 
-      return "#{days_to_milestone} days left to $#{number_with_delimiter(next_milestone)} MRR (#{(Time.current + days_to_milestone.days).strftime('%b %d, %Y')})"
+      "#{days_to_milestone} days left to $#{number_with_delimiter(next_milestone)} MRR (#{target_date.strftime('%b %d, %Y')})"
     end
 
     private
 
     def paid_charges
-      Pay::Charge.where("(pay_charges.data ->> 'paid' IS NULL OR pay_charges.data ->> 'paid' != ?) AND pay_charges.amount > 0", 'false')
-                 .where("pay_charges.data ->> 'status' = ? OR pay_charges.data ->> 'status' IS NULL", 'succeeded')
+      # Pay gem v10+ stores charge data in `object` column, older versions used `data`
+      # We check both columns for backwards compatibility using database-agnostic JSON extraction
+      #
+      # Performance note: The COALESCE pattern may prevent index usage on some databases.
+      # This is an acceptable tradeoff for backwards compatibility with Pay < 10.
+      # For high-volume scenarios, consider adding a composite index or upgrading to Pay 10+
+      # where only the `object` column is used.
+
+      # Build JSON extraction SQL for both object and data columns
+      paid_object = json_extract('pay_charges.object', 'paid')
+      paid_data = json_extract('pay_charges.data', 'paid')
+      status_object = json_extract('pay_charges.object', 'status')
+      status_data = json_extract('pay_charges.data', 'status')
+
+      Pay::Charge
+        .where("pay_charges.amount > 0")
+        .where(<<~SQL.squish, 'false', 'succeeded')
+          (
+            (COALESCE(#{paid_object}, #{paid_data}) IS NULL
+             OR COALESCE(#{paid_object}, #{paid_data}) != ?)
+          )
+          AND
+          (
+            COALESCE(#{status_object}, #{status_data}) = ?
+            OR COALESCE(#{status_object}, #{status_data}) IS NULL
+          )
+        SQL
     end
 
     def calculate_all_time_revenue
@@ -150,7 +185,16 @@ module Profitable
 
     def calculate_churn(period = DEFAULT_PERIOD)
       start_date = period.ago
-      total_subscribers_start = Pay::Subscription.active.where('created_at < ?', start_date).distinct.count('customer_id')
+
+      # Count subscribers who were active AT the start of the period
+      # (not just currently active, but active at that historical point)
+      total_subscribers_start = Pay::Subscription
+        .where('pay_subscriptions.created_at < ?', start_date)
+        .where('pay_subscriptions.ends_at IS NULL OR pay_subscriptions.ends_at > ?', start_date)
+        .where.not(status: ['trialing', 'paused'])
+        .distinct
+        .count('customer_id')
+
       churned = calculate_churned_customers(period)
       return 0 if total_subscribers_start == 0
       (churned.to_f / total_subscribers_start * 100).round(2)
@@ -173,26 +217,16 @@ module Profitable
       start_date = period.ago
       end_date = Time.current
 
+      # Churned MRR = full monthly rate of subscriptions that ended in the period
+      # MRR is a rate, not revenue, so we don't prorate
       Pay::Subscription
         .includes(:customer)
         .select('pay_subscriptions.*, pay_customers.processor as customer_processor')
         .joins(:customer)
         .where(status: ['canceled', 'ended'])
-        .where('pay_subscriptions.updated_at BETWEEN ? AND ?', start_date, end_date)
+        .where(ends_at: start_date..end_date)
         .sum do |subscription|
-          if subscription.ends_at && subscription.ends_at > end_date
-            # Subscription ends in the future, don't count it as churned yet
-            0
-          else
-            # Calculate prorated MRR if the subscription ended within the period
-            end_date = [subscription.ends_at, end_date].compact.min
-            days_in_period = (end_date - start_date).to_i
-            total_days = (subscription.current_period_end - subscription.current_period_start).to_i
-            prorated_days = [days_in_period, total_days].min
-
-            mrr = MrrCalculator.process_subscription(subscription)
-            (mrr.to_f * prorated_days / total_days).round
-          end
+          MrrCalculator.process_subscription(subscription)
         end
     end
 
@@ -200,6 +234,8 @@ module Profitable
       start_date = period.ago
       end_date = Time.current
 
+      # New MRR = full monthly rate of subscriptions created in the period
+      # MRR is a rate, not revenue, so we don't prorate
       Pay::Subscription
         .active
         .includes(:customer)
@@ -208,11 +244,7 @@ module Profitable
         .where(created_at: start_date..end_date)
         .where.not(status: ['trialing', 'paused'])
         .sum do |subscription|
-          mrr = MrrCalculator.process_subscription(subscription)
-          days_in_period = (end_date - subscription.created_at).to_i
-          total_days = (subscription.current_period_end - subscription.current_period_start).to_i
-          prorated_days = [days_in_period, total_days].min
-          (mrr.to_f * prorated_days / total_days).round
+          MrrCalculator.process_subscription(subscription)
         end
     end
 
@@ -266,8 +298,10 @@ module Profitable
     end
 
     def calculate_new_subscribers(period)
+      # Count customers who got a NEW subscription in the period
+      # (not customers created in the period, but subscriptions created in the period)
       Pay::Customer.joins(:subscriptions)
-                   .where(created_at: period.ago..Time.current)
+                   .where(pay_subscriptions: { created_at: period.ago..Time.current })
                    .distinct
                    .count
     end
@@ -279,10 +313,16 @@ module Profitable
     end
 
     def calculate_lifetime_value
-      return 0 if total_customers.zero?
-      churn_rate = churn.to_f / 100
+      # LTV = Monthly ARPU / Monthly Churn Rate
+      # where ARPU (Average Revenue Per User) = MRR / active subscribers
+      subscribers = calculate_active_subscribers
+      return 0 if subscribers.zero?
+
+      monthly_arpu = mrr.to_f / subscribers  # in cents
+      churn_rate = churn.to_f / 100  # monthly churn as decimal (e.g., 5% = 0.05)
       return 0 if churn_rate.zero?
-      (average_revenue_per_customer.to_f / churn_rate).round
+
+      (monthly_arpu / churn_rate).round  # LTV in cents
     end
 
     def calculate_mrr_growth(period = DEFAULT_PERIOD)
@@ -303,9 +343,15 @@ module Profitable
     end
 
     def calculate_mrr_at(date)
+      # Find subscriptions that were active AT the given date:
+      # - Created before or on that date
+      # - Not ended before that date (ends_at is nil OR ends_at > date)
+      # - Not paused at that date
+      # - Not in trialing status (trials don't count as MRR)
       Pay::Subscription
-        .active
         .where('pay_subscriptions.created_at <= ?', date)
+        .where('pay_subscriptions.ends_at IS NULL OR pay_subscriptions.ends_at > ?', date)
+        .where('pay_subscriptions.pause_starts_at IS NULL OR pay_subscriptions.pause_starts_at > ?', date)
         .where.not(status: ['trialing', 'paused'])
         .includes(:customer)
         .select('pay_subscriptions.*, pay_customers.processor as customer_processor')

metadata

@@ -1,14 +1,13 @@
 --- !ruby/object:Gem::Specification
 name: profitable
 version: !ruby/object:Gem::Version
-  version: 0.2.2
+  version: 0.3.0
 platform: ruby
 authors:
 - rameerez
-autorequire:
 bindir: exe
 cert_chain: []
-date: 2024-09-01 00:00:00.000000000 Z
+date: 2026-01-01 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: pay
@@ -47,6 +46,7 @@ executables: []
 extensions: []
 extra_rdoc_files: []
 files:
+- Appraisals
 - CHANGELOG.md
 - LICENSE.txt
 - README.md
@@ -56,9 +56,15 @@ files:
 - app/views/layouts/profitable/application.html.erb
 - app/views/profitable/dashboard/index.html.erb
 - config/routes.rb
+- gemfiles/pay_10.0.gemfile
+- gemfiles/pay_11.0.gemfile
+- gemfiles/pay_7.3.gemfile
+- gemfiles/pay_8.3.gemfile
+- gemfiles/pay_9.0.gemfile
 - lib/profitable.rb
 - lib/profitable/engine.rb
 - lib/profitable/error.rb
+- lib/profitable/json_helpers.rb
 - lib/profitable/mrr_calculator.rb
 - lib/profitable/numeric_result.rb
 - lib/profitable/processors/base.rb
@@ -76,8 +82,7 @@ metadata:
   allowed_push_host: https://rubygems.org
   homepage_uri: https://github.com/rameerez/profitable
   source_code_uri: https://github.com/rameerez/profitable
-  changelog_uri: https://github.com/rameerez/profitable
-post_install_message:
+  changelog_uri: https://github.com/rameerez/profitable/blob/main/CHANGELOG.md
 rdoc_options: []
 require_paths:
 - lib
@@ -92,8 +97,7 @@ required_rubygems_version: !ruby/object:Gem::Requirement
     - !ruby/object:Gem::Version
       version: '0'
 requirements: []
-rubygems_version: 3.5.17
-signing_key:
+rubygems_version: 3.6.2
 specification_version: 4
 summary: Calculate the MRR, ARR, churn, LTV, ARPU, total revenue & est. valuation
   of your `pay`-powered Rails SaaS