Gross Revenue Churn Calculator
Calculate gross revenue churn rate from contraction and churned MRR (with monthly-equivalent conversion).
Gross revenue churn is the share of starting MRR you lost to downgrades (contraction) and cancellations (churn) over a period. It excludes expansion by definition.
If your window is not monthly, convert to a monthly-equivalent churn rate so you can compare periods consistently.
Prefer an explanation- Read the guide.
Gross revenue churn: definition, formula, and how to calculate itRetention & churn hub: cohorts, GRR/NRR, and retention curvesNRR vs GRR: differences, formulas, and how to use bothChurn: How to measure churn rate correctly
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Use 1 for monthly gross churn; 3 for quarterly, etc.
Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
13%
- Starting MRR
- $100,000
- Contraction MRR (downgrades)
- $5,000
- Churned MRR (cancellations)
- $8,000
- Period length (months)
- 1
How to calculate
- Enter starting MRR for the cohort (beginning of period).
- Enter contraction MRR and churned MRR for the same cohort and period.
- Compute gross revenue churn = (contraction + churn) / starting MRR.
- Optionally convert to monthly-equivalent churn for non-monthly windows.
Formula
Gross revenue churn = (contraction + churned MRR) / starting MRR; Monthly-equivalent = 1 - (1 - period churn)^(1/period months)
- Uses starting MRR as the denominator (standard for churn rates).
- Gross churn excludes expansion by definition.
- Monthly-equivalent conversion assumes smooth compounding across the period (approximation).
FAQ
Is gross revenue churn the same as GRR-
They are closely related. GRR is the remaining revenue after losses (ending gross / starting). Gross revenue churn focuses on the losses ((contraction + churn) / starting).
Should I include expansion in gross churn-
No. Gross churn excludes expansion. Expansion is tracked separately and is included in NRR.
Common mistakes
- Mixing cohorts or time windows (starting MRR from one cohort, losses from another).
- Including expansion (gross churn excludes expansion).
- Using ending MRR as the denominator instead of starting MRR.
How to interpret
Gross revenue churn tips
- Track contraction and churned MRR separately to diagnose downgrades vs cancellations.
- Segment by plan and customer size; blended churn can hide weak cohorts.
- Use GRR/NRR alongside churn to get the full retention picture.
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Quick checks
- Keep time units consistent (monthly vs annual) across inputs and outputs.
- Segment by cohort/channel/plan before trusting a blended average.
- Use the related guide to avoid common definition and denominator mismatches.