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Revenue metrics

Churned MRR

Recurring revenue lost from customers who cancelled outright in the period, whether they chose to leave or their payments stopped working.

Churned MRR is the recurring revenue of customers who left. A customer who went from $400 to $0 contributes $400 of churned MRR; one who went from $400 to $200 contributes $200 of contraction, not churn.

Split it by cause before you act on it. Involuntary churn, where the customer never decided to leave and a card simply failed, is often a fifth to a third of the total and is recovered with retries and reminders rather than with product work.

Churned MRR is not the same as customer churn. Losing one enterprise account and losing forty of your smallest are the same logo count and very different months.

Related terms

  • Customer churn The share of customers who cancelled in a period, counted as logos rather than as revenue.
  • Involuntary churn Customers lost because a payment failed rather than because they chose to leave. Usually the cheapest churn to recover.
  • Contraction MRR Recurring revenue lost from customers who stayed: downgrades, removed seats, dropped add-ons and reduced commitments.
  • GRR (Gross Revenue Retention) Revenue retained from an existing cohort with expansion excluded, so it can never exceed 100%. The measure of how much you keep.