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Formula
MRR Churn = (MRR at Start of Period - MRR at End of Period) / MRR at Start of Period * 100
Know your metric
Importance of
Monthly Recurring Revenue Churn Rate
Customer Retention Insight
Indicates effectiveness of customer retention strategies.
Revenue Stability Measure
Helps assess the stability of recurring revenue.
Predictive of Growth
Can predict future revenue challenges and opportunities.
Drawbacks of
Monthly Recurring Revenue Churn Rate
Limited to Recurring Models
Only applicable in subscription-based models.
Does Not Account for New Sales
Focuses only on existing customer revenue.
Can Be Seasonal
May vary significantly with seasonal business patterns.
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