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.
 
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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

  1. Enter starting MRR for the cohort (beginning of period).
  2. Enter contraction MRR and churned MRR for the same cohort and period.
  3. Compute gross revenue churn = (contraction + churn) / starting MRR.
  4. 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.

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.