JavaScript is required for the interactive calculator. Please enable JavaScript and reload.

MRR Churn Rate Calculator

Calculate MRR churn rate from churned MRR and starting MRR (with monthly-equivalent conversion).

MRR churn rate measures lost recurring revenue from cancellations (churned MRR) as a percentage of starting MRR for a period.

If your measurement window is not a month, convert to a monthly-equivalent churn rate so you can compare periods consistently.

Prefer an explanation- Read the guide.

Related definitions:mrr mrr churn rate

MRR churn rate: definition, formula, and monthly-equivalent conversion Retention & churn hub: cohorts, GRR/NRR, and retention curves Churn: How to measure churn rate correctly MRR: what it means (and how to track it cleanly)

Starting MRR

Churned MRR (lost)

Contraction MRR (optional)

Used to compute gross revenue churn (churn + contraction).

Period length (months)

Use 1 for monthly churn; 3 for quarterly, etc.

Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:

Starting MRR: $200,000
Churned MRR (lost): $8,000
Contraction MRR (optional): $0
Period length (months): 1

How to calculate

Enter starting MRR and churned MRR for the same period.
Enter the number of months in the period (1 for monthly reporting).
Review the period churn rate and the monthly-equivalent rate.

Formula

Period MRR churn = churned MRR / starting MRR; Monthly-equivalent churn = 1 - (1 - period churn)^(1/period months)

Uses starting MRR as the denominator (standard for churn rates).
Monthly-equivalent conversion assumes churn compounds smoothly across the period (approximation).

FAQ

Is MRR churn the same as customer churn-

No. MRR churn is revenue churn (lost recurring revenue). Customer churn is logo churn (lost customers). They can move differently if account sizes vary.

Should I include downgrades in churned MRR-

Typically churned MRR is cancellations. Downgrades are contraction MRR. You can combine them as 'gross MRR churn' if you label it clearly.

Common mistakes

Mixing churned MRR with contraction MRR (downgrades) without labeling.
Using ending MRR as the base instead of starting MRR (definition drift).
Mixing MRR churn (revenue churn) with logo churn (customer churn).

How to interpret

MRR churn tips

Track churned MRR and contraction MRR separately, then also track GRR/NRR for the full retention picture.
Segment by plan and customer size; blended churn can hide weak cohorts.
Pair churn with net new MRR and an MRR waterfall to see what's driving growth.