Revenue Churn Calculator (Gross MRR Lost)

Recurring revenue lost from downgrades and cancellations compared with recurring revenue at the start of the period.

Overview

Use this to estimate how much recurring revenue was lost from downgrades and cancellations before counting expansion revenue. It's about dollars shrinking, not just how many customers left.

When to use this calculator

Rule of thumb

This isolates shrinking recurring dollars from expansion noise—use the same churn categories as Finance.

Terms used in this calculator

Churn rate (logo churn)
What share of the starting cohort you lost inside the timeframe you framed.
MRR
Monthly recurring revenue: paying subscribers times the recurring monthly revenue you attach to each after any annual-to-monthly split you use.
LTV
A simple lifetime earnings sketch from average revenue, margin, and churn—not a prophecy.

Calculator

Revenue churn rate 5.14%

Results are simplified estimates for educational purposes only and should not be treated as financial, accounting, legal, or tax advice. See our disclaimer for details.

Formula

Churned MRR divided by starting MRR × 100—use the same definitions your finance team uses.

Example calculation

Using the default example values from the JSON seed for this tool:

Churned MRR removed
9500
Starting MRR
185000

Result: 5.14% (Revenue churn rate)

How to interpret this result

Lost recurring dollars (downgrades and cancels) versus starting recurring revenue baseline.

Finance teams use different churn labels—match theirs before quoting numbers.

Separate from expansions—you want the shrink slice clean.

Common mistakes

  • Confusing contraction dollars with customer counts.
  • Double-counting downgrades Finance already categorized elsewhere.
  • Forgetting FX when multi-currency ARR floats without product change.

What to do next

Compare expansion share and logos next so losses are not blamed on acquisition alone.

How to improve this result

  • Quantify downgrade versus cancel separately when finance allows.
  • Expand healthy accounts proactively when contractions concentrate.
  • Forecast cash timing—not just ARR deltas—when mitigating risk.

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FAQ

Does this include downsells?
Yes, if your team counts downgrades as churned MRR. Use the same definitions every time.
Why differ from logos?
A few big accounts swinging price moves revenue faster than logo counts imply.
Overlap with net retention?
Net retention adds expansion back in. This number only measures how much recurring revenue shrank from churn and downgrades.
FX noise?
Multi-currency ARR swings without product change—footnote when explaining.

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