What is Churn MRR?
Churn MRR is the monthly revenue you lose when customers cancel their subscription entirely. The customer stops paying. Their MRR goes to zero.How to Calculate It
Churn MRR = Sum of MRR from all customers who cancelled in the periodExample: 2 customers cancel this month:
- Customer A was paying $49/month → $49
- Customer B was paying $99/month → $99
Where It Fits
Churn MRR is one of five MRR movement types: Net New MRR = New + Expansion + Reactivation − Contraction − Churn Churn is the biggest threat to growth. If churn MRR is higher than New + Expansion MRR, your business is shrinking. Bigdelta tracks Churn MRR automatically as an activity on each account.FAQ
Churn MRR vs Contraction MRR?
Churn MRR vs Contraction MRR?
Churn = customer cancelled completely. Contraction = customer contracted but stayed.
Do failed payments count as churn?
Do failed payments count as churn?
Not immediately. A failed payment is usually retried. If the payment is never recovered and the subscription ends, then it counts as churn.