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MRR Churn Rate

The monthly lost revenue due to cancelations or downgrades in the subscriptions.

MRR Churn Rate

What is MRR Churn Rate?

This is the sad version of the MRR because it shows the money you are losing this month due to cancellations or downgrades current users have made in their accounts. Nevertheless, it’s important to track it and keep an eye on it regularly.

It gives you information about your business’ evolution, and whether your last actions are having a positive impact on this KPI or not. For instance, a marketing action to prevent people from downgrading will show positive results if the next month’s churn rate has decreased. But it will as well show you bad news.

It’s a very interesting idea to measure this Churn Rate on a monthly basis, so you can act fast on it and re-design your strategy to reduce this rate by the following months. Moreover, you can also set this KPI so that it shows your evolution through the year to have a better insight into your overall performance.

Pre-built widgets to display MRR Churn Rate

MRR Churn Rate

month

MRR Churn Rate

MRR Churn Rate

year to date

MRR Churn Rate

How to calculate MRR Churn Rate?
(
    Sum(Churned Subscription,MRR) * 
    -1 /
    Sum(New Monthly MRR,MRR).History(1,month)
)
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