About the MRR Churn Rate Calculator
What is MRR Churn Rate?
Monthly Recurring Revenue (MRR) Churn is a vital metric for SaaS and subscription businesses, measuring the revenue lost due to customer cancellations and downgrades. Unlike customer churn, which only tracks the number of lost customers, MRR churn quantifies the financial impact. This calculator provides both Gross and Net MRR Churn rates to give you a complete picture of your revenue momentum.
How to Use This Tool
- MRR at Start of Month ($): Enter your total Monthly Recurring Revenue at the beginning of the month.
- Expansion MRR from Upgrades ($): Input the additional MRR gained from existing customers who upgraded their plans.
- Churned MRR ($): Enter the total MRR lost from customers who canceled or downgraded their plans during the month.
Understanding the Results
- Gross MRR Churn Rate: This shows the total percentage of revenue lost before accounting for any expansion. It's a raw measure of the negative impact of churn.
- Net MRR Churn Rate: This shows the revenue lost after factoring in expansion MRR from existing customers. A negative Net MRR Churn Rate (often called Net Negative Churn) is the gold standard for SaaS, as it means your revenue is growing even without acquiring new customers.