How is revenue churn calculated?

Revenue churn = (MRR lost to churn + downgrades) ÷ MRR at start of period. It excludes expansion revenue, which is tracked separately.

Is monthly or annual churn more useful?

Monthly churn is more actionable for operational decisions. Annual churn is better for board reporting and investor benchmarking. Use both depending on audience.

Revenue Churn Rate Calculator — MRR Lost to Cancellations

Calculate revenue churn rate — the percentage of MRR lost due to cancellations and downgrades in a given period.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate revenue churn rate — the percentage of MRR lost due to cancellations and downgrades in a given period. Use the revenue churn rate result to inform your calculation.

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Revenue Churn Rate Calculator — MRR Lost to Cancellations

How to Use

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Frequently Asked Questions

How is revenue churn calculated?

Is monthly or annual churn more useful?