MRR Churn Rate
The MRR Churn Rate report (also commonly referred to as Revenue Churn Rate or Gross Revenue Churn) tracks the percentage of Monthly Recurring Revenue (MRR) lost from customers who cancelled their paid subscriptions during a specific period. It is a critical metric for assessing the stability and quality of your revenue streams.
MRR Churn Rate is the direct opposite of Gross Revenue Retention (GRR).
MRR Churn Rate is calculated by dividing the MRR lost from churned customers during a period by the total MRR at the start of that period.
Overview
The MRR Churn Rate report includes a timeline chart and a breakdown table. This report is crucial for understanding the financial stability of your business, especially since losing a few large customers has a far greater impact here than on Logo Churn. The breakdown table cells are not clickable and there is no detail table.
Timeline chart
The timeline chart displays a single line:
- MRR Churn Rate (Blue line): This is the primary metric, showing the calculated MRR churn rate for the selected period.
The report employs a specific time-window convention to ensure meaningful data, especially at daily or weekly intervals:
Monthly Aggregation: If you select an Interval of daily, weekly, or monthly, the churn calculation is performed on a month-to-month basis. This means the Churn MRR for the preceding month is compared against the Starting MRR at the start of that month, reducing noise and providing a standardized rate that is comparable across your entire history.
Quarterly/Yearly Aggregation: If you select quarterly or yearly, the churn is calculated on a quarter-over-quarter or year-over-year basis, respectively.
The currently ongoing period is marked as a dashed line. You can adjust the chart data using the date picker, interval selector, and filters.
Breakdown table
The table underneath the chart displays the core data points for each period.
| Metric | Description |
|---|---|
| MRR | The total MRR at the end of the period. |
| Contraction | The MRR lost from existing customers downgrading their subscriptions during the period. |
| Churned MRR | The total amount of MRR lost from customers who canceled all paid subscriptions during the period. |
| MRR Churn Rate | The calculated MRR Churn Rate for the period (displayed as a percentage). |
The MRR Churn Rate is typically shown in red to visually emphasize the financial loss.
Filters
The report supports a wide range of filters to help you analyze revenue churn within specific segments. These include:
Date range
Select a custom range or preset periods (last 30 days, last quarter, etc.)
Interval
Choose how the rate is displayed: daily, weekly, monthly, quarterly, or yearly. Note the monthly calculation convention explained above.
Additional filters – plan, region/country, billing frequency, customer age (time since signup), etc. (see all filters)
Filters are applied to both the chart and the table simultaneously.
Exporting the data
You can export the table as a CSV file for offline analysis or reporting by clicking the "Export" icon next to the date picker.
Practical tips
- Prioritize High-Value Churn: Unlike Logo Churn, MRR Churn weights customers by their revenue. If your MRR Churn spikes, investigate the specific high-MRR customers lost immediately.
- The Benchmark is Low: The goal for MRR Churn Rate is to keep it as close to 0% as possible. A healthy, profitable SaaS business typically maintains a very low single-digit MRR Churn Rate.
- Understand Gross Loss: Note that this metric only captures MRR lost due to cancellations, not total loss from contractions. For the full picture of gross revenue loss, you would need to combine Contraction and Churned MRR.
