Free MRR Churn Rate Calculator

Enter your recurring revenue data to instantly see your gross MRR churn rate, annual revenue impact, and how you compare to benchmarks.

Your Data

MRR at Start of Month

MRR Lost to Cancellations

MRR Lost to Downgrades (Optional)

Leave blank or enter $0 if you don't track downgrades separately.

Key Takeaways

Revenue churn weights every loss by its size, so one large cancellation can outweigh many small ones. Customer churn and revenue churn answer different questions, which is why most teams report both rather than picking one.
Gross revenue churn is the mirror of gross revenue retention. Median annual gross retention runs 50% under $25 average revenue per account and 82% above $1,000 (ChartMogul SaaS Benchmarks, 2023), which is 50% against 18% annual gross revenue churn.
Negative net churn is largely a high-price-point phenomenon. 3% of companies under $25 average revenue per account reach it, against 47% above $1,000 (ChartMogul SaaS Benchmarks, 2023).
Downgrades deserve as much attention as cancellations and usually get less. Among companies above $1M ARR, churn accounts for roughly 70% of revenue lost and contraction the other 30% (ChartMogul SaaS Benchmarks, 2023).

Monthly MRR Churn Benchmarks

Range	Monthly MRR Churn
Best-in-Class	0–2.5%
Average	2.5–8%
High	8%+

What Is MRR Churn?

MRR churn is the recurring revenue you lose over a period, as a percentage of the revenue you started with. Unlike customer churn it weights every loss by its size, so losing one large account can matter more than losing ten small ones.

It comes in two forms. Gross MRR churn counts only what you lost, meaning cancellations plus downgrades, and never falls below zero. Net MRR churn subtracts what you gained back from those same customers through upgrades and reactivations, and can go negative when expansion more than replaces everything that left.

How to Calculate MRR Churn Rate

Gross MRR churn is (churned MRR + contraction MRR) ÷ MRR at the start of the period × 100. Net MRR churn subtracts expansion and reactivation MRR from the numerator before dividing, which is the only difference between them.

For example, starting a month with $100,000 MRR and losing $4,000 to cancellations and $1,000 to downgrades gives gross MRR churn of 5,000 ÷ 100,000 × 100 = 5%; if existing customers also added $3,000 in upgrades, net MRR churn is 2%. Report gross when you want to know how well you retain, and net when you want to know whether the base is growing by itself.

MRR Churn vs. Customer Churn: Why You Need Both

The two metrics disagree by design, and the disagreement is the useful part. A business losing ten customers paying $10 per month and one paying $500 has lost eleven customers and $600 of monthly revenue, and each metric will name a different event as the one that mattered.

Customer churn tells you how many relationships you're failing to keep, which is a product and support signal. Revenue churn tells you what those failures cost, which is a planning signal. Watch only the first and you can lose your largest accounts without noticing; watch only the second and a broad failure among small customers stays invisible until it works its way up.

How to Reduce Revenue Churn

Because revenue churn is size-weighted, the arithmetic favors protecting your largest accounts first. That only holds up to a point, since concentration is its own risk and the practices that keep big customers rarely transfer down-market.

Contraction is the half most teams under-manage. Among companies above $1M ARR, churn accounts for roughly 70% of revenue lost and contraction the remaining 30% (ChartMogul SaaS Benchmarks, 2023), and at higher price points contraction can reach 40% of the total (ChartMogul SaaS Benchmarks, 2023). A customer moving to a cheaper plan never appears in a customer-churn number at all, so watching plan changes as closely as cancellations catches a decline while there is still a relationship to save.

MRR Churn Calculator FAQ

Gross counts only losses: cancellations plus downgrades, divided by starting MRR. It never goes below zero. Net subtracts expansion and reactivation from the same customers before dividing, so it can go negative when expansion outruns losses. Gross measures the leak on its own; net measures whether the base grows without new sales. Reporting only net can hide a serious retention problem behind strong expansion.

It depends on what you charge, more than on anything else. Reading ChartMogul's gross retention table as churn, median annual gross revenue churn runs 50% under $25 average revenue per account, 36% at $25-100, 28% at $100-250, 26% at $250-500, 21% at $500-1k and 18% above $1k (ChartMogul SaaS Benchmarks, 2023). A flat threshold will therefore call a perfectly ordinary low-price-point business a failure, so find your own band first.

Yes, in gross MRR churn. A downgrade is lost recurring revenue whether or not the customer stayed, and leaving it out understates the leak. Track it separately as well, because contraction and cancellation have different causes and different fixes, and among companies above $1M ARR contraction is roughly 30% of all revenue lost (ChartMogul SaaS Benchmarks, 2023).

The same way customer churn does, by compounding rather than adding. Losing 5% of MRR per month leaves roughly 46% of the starting revenue gone after a year, not 60%, because each month's loss applies to a base the month before already reduced. The calculator above reports the annual figure alongside the monthly one.

Yes, and it usually means your larger accounts are leaving. MRR churn above customer churn says the customers you lost were worth more than average; the reverse says you're losing your smallest accounts. Neither is automatically worse, but they call for different responses, which is the practical reason to track both.