Free Revenue Churn Calculator
Calculate gross revenue churn rate to measure the percentage of recurring revenue lost from cancellations and downgrades.
Gross Revenue Churn Rate
5.00%
Gross Revenue Churn Rate vs Churned MRR (lost from cancellations)
How to Calculate Revenue Churn
Formula
Gross Revenue Churn = (Churned MRR + Contraction MRR) / Starting MRR x 100
Revenue churn captures all recurring revenue losses in dollar terms, combining full cancellations with downgrades. It weights each lost customer by their spending, so losing one $5,000/month enterprise account matters more than losing five $50/month accounts. This is the metric investors scrutinize most.
Example Calculation
A company starts with $300,000 MRR, loses $12,000 from cancellations and $3,000 from downgrades.
- 01Total MRR Lost = $12,000 + $3,000 = $15,000
- 02Gross Revenue Churn = ($15,000 / $300,000) x 100 = 5%
- 03Annualized Loss = $15,000 x 12 = $180,000
Frequently Asked Questions
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