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Documentation Index

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Average Contraction Amount metric chart view
Average Contraction Amount metric table view

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What is Average Contraction Amount?

It’s the average amount of MRR you lose each time a customer reduces their subscription. If 3 customers contracted this month and the total Contraction MRR is $150, the average contraction amount is $50.

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How to Calculate It

Average Contraction Amount = Total Contraction MRR / Number of contraction events
Example:
  • Customer A contracted by $30
  • Customer B contracted by $50
  • Customer C contracted by $70
Average = ($30 + $50 + $70) / 3 = $50

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Why It’s Useful

It tells you how much revenue customers are cutting when they reduce their plan. A growing average means customers are making bigger cuts — a stronger warning sign than small reductions. Bigdelta calculates this automatically from your Contraction MRR events.