Net MRR Churn
The Net MRR Churn Rate report tracks the total percentage of Monthly Recurring Revenue (MRR) lost or gained from an existing customer cohort. This metric is the net result of all forms of MRR change among existing customers: Expansion, Reactivation, Contraction, and Churn.
This metric is the inverse of Net Revenue Retention (NRR). While MRR Churn Rate focuses only on losses, Net MRR Churn Rate provides a comprehensive view of whether an existing customer base is growing or shrinking financially.
Net MRR Churn Rate is calculated by dividing the net change in MRR (Contraction + Churned MRR - Expansion - Reactivation) during a period by the total MRR at the start of that period.
Overview
The Net MRR Churn Rate report includes a timeline chart and a breakdown table. This report is critical because it determines whether expansion revenue is successfully offsetting revenue leakage. The breakdown table cells are not clickable and there is no detail table.
Timeline chart
The timeline chart displays the Net MRR churn rate over time.
The report employs the same month-to-month calculation convention as other MRR reports to ensure consistent data over time.
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 (Starting MRR + New + Expansion + Reactivation - Contraction - Churned). This is the closing MRR. |
| Expansion | The MRR gained from existing customers upgrading or adding more seats/products during the period. |
| Reactivation | The MRR gained from former, churned customers who started a new paid subscription during the period. |
| Contraction | The MRR lost from downgrades (e.g., switching to a cheaper plan or fewer seats) by existing customers during the period. |
| Churned MRR | The MRR lost from customers who canceled all paid subscriptions during the period. |
| Net MRR Churn Rate | The final calculated net churn rate, displayed as a percentage. This value can be negative (e.g., -5% indicates Negative Churn). |
Filters
The report supports a wide range of filters to help you analyze where revenue is being retained or lost. These include:
- Date range
- Interval (Daily, weekly, monthly, quarterly, or yearly)
- Additional filters – plan, region/country, billing frequency, 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
- Aim for Negative Churn: The ultimate goal is to keep the Net MRR Churn Rate in negative territory (e.g., -5% or -10%). This is the equivalent of an NRR rate of 105% or 110%, respectively.
- Identify Drivers: If the Net MRR Churn Rate is positive (in the red), use the Breakdown table to quickly determine the cause: Is the issue primarily Churned MRR (lost customers) or is Contraction MRR (downgrades) the main problem?
- Expansion Effectiveness: Segmenting this report by product plan or feature usage can show which customer segments are providing the most powerful Expansion MRR to offset losses.
