Definition
Churned MRR is recurring revenue lost from customers who cancel in a period. It is a key component of net new MRR and revenue retention.
How to use it
- Use churned MRR to quantify revenue leakage from cancellations.
- Pair churned MRR with logo churn to understand whether losses come from big or small customers.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Churned MRR" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., MRR Churn Rate Calculator) to sanity-check assumptions.
- Read the related guide (e.g., MRR churn rate: definition, formula, and monthly-equivalent conversion) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- MRR Churn Rate Calculator: Calculate MRR churn rate from churned MRR and starting MRR (with monthly-equivalent conversion).
- Net New MRR Calculator: Calculate net new MRR from new, expansion, contraction, and churned MRR.
- MRR Forecast Calculator: Forecast MRR over time using new MRR plus expansion, contraction, and churn rates.
- Revenue Retention Curve Calculator: Model GRR and NRR over time from monthly expansion, contraction, and churn assumptions (existing cohort only).
Guides
- MRR churn rate: definition, formula, and monthly-equivalent conversion: MRR churn rate explained: churned MRR / starting MRR, plus how to convert non-monthly windows into a monthly-equivalent rate.
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.
- NRR vs GRR: differences, formulas, and how to use both: NRR includes expansion; GRR excludes it. Learn when each metric matters, how to compute both from the same cohort, and how to interpret the gap.
- MRR forecasting: a simple bridge model (new, expansion, churn): A practical way to forecast MRR using a monthly bridge: starting MRR + new MRR + expansion - contraction - churn.
- Revenue retention curves: GRR vs NRR over time (how to model): A practical guide to revenue retention curves: how GRR and NRR compound, how to interpret expansion vs churn, and how to avoid common mistakes.