Gross Revenue Churn

Definition

Gross revenue churn is the share of starting MRR lost to downgrades (contraction) and cancellations (churn) over a period. It excludes expansion by definition.

Formula

Gross revenue churn = (contraction MRR + churned MRR) / starting MRR

How to use it

• It's a loss metric (how much revenue you lost), not a remaining metric.
• Use the same cohort and time window for starting MRR and losses.
• Track gross churn alongside GRR/NRR to avoid being misled by expansion.

Common mistakes

• Including expansion (gross churn excludes it).
• Mixing cohorts or time windows (start from one cohort, losses from another).
• Using ending MRR as the denominator instead of starting MRR.

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 "Gross Revenue Churn" 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., Gross Revenue Churn Calculator) to sanity-check assumptions.
• Read the related guide (e.g., Gross revenue churn: definition, formula, and how to calculate it) for context and common pitfalls.

Where to use this on MetricKit