Part of the MRR lost due to customers’ cancellations.
What is Churn MRR?
This is a very important KPI, especially for SaaS companies with customers paying different monthly fees. If you only look at the number of cancellations per month, you might be getting the wrong insight regarding their value.
Churn MRR, on the other hand, shows you the amount of money that you are losing per month due to these cancellations. Apart from the churn itself, you should also be counting the downgrades, because there’s an income that you won’t be getting any more. As in any other calculation, the more accurate data you can provide, the more realistic results you will get.
Lastly, this KPI is usually calculated on a monthly basis, in order to contrast it with the monthly revenue. However, you can choose the period of time that best fits your needs. It can be any time from minutes to years.
Pre-built widgets to display Churn MRR
How to calculate Churn MRR?
( Sum(Churned Subscription,MRR) )
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