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.
Measured as
Measure Churned MRR on the same customer segment, time window, and revenue basis each time you review it.
Operator takeaway
- 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.
- Keep Churned MRR consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Quantify the impact with MRR Churn Rate Calculator if you need to turn the definition into an operating assumption.
- Read MRR churn rate: definition, formula, and monthly-equivalent conversion if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
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: Monthly Projection, Formula, and Example: Project future MRR using new MRR, expansion, contraction, churn, and time horizon inputs with a simple monthly forecast model.
- 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 Forecast Formula: Example, Template, and Monthly Bridge: Learn how to forecast MRR with a monthly bridge model using starting MRR, new MRR, expansion, contraction, and 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.