What is Churned MRR (Cancellation MRR)?
Churned MRR (Cancellation MRR) is the portion of existing-customer monthly recurring revenue that disappears in a given period because customers cancel (and stop paying).
It’s a direct measure of revenue leakage that weakens ARR run-rate, reduces gross revenue retention (GRR), and lowers the predictability of future cash flows.
In value-creation terms, higher churned MRR compresses LTV, worsens CAC payback, and increases execution risk in planning, budgeting, and valuation work.
Formula
Example
Single period (Monthly):
- Starting MRR (existing customers): $100,000
- Churn rate (monthly): 3%
- Churned MRR: $100,000 × 0.03 = $3,000
- Ending MRR: $100,000 − $3,000 = $97,000
- Retention: (1 − 0.03) × 100 = 97%
Project over N months (Compounded):
- Starting MRR (existing customers): $100,000
- Monthly churn rate: 2%
- Horizon: 12 months
- Projected ending MRR: $100,000 × (0.98)12 = $78,472
- Projected MRR lost (cumulative): $100,000 − $78,472 = $21,528
- Cumulative churn: [1 − (0.98)12] × 100 = 21.53%
Frequently Asked Questions
Is churned MRR the same as “gross revenue churn” or “net revenue churn”?
Churned MRR is the $ amount of recurring revenue you lost from your existing base in a period. Gross revenue churn rate is that loss as a % of starting MRR. Net revenue churn adjusts for expansion (upsells) and can be lower—or even negative.
What should count as “Cancellation MRR” in this calculator?
MRR lost from customers who fully cancel recurring subscriptions. Don’t mix in downgrades/contraction unless you’re intentionally measuring gross revenue churn (cancellations + contraction). Keep “new MRR” and expansions out of it—this is existing-customer loss.
I only know customer churn (logo churn). Can I use it to get churned MRR?
Only roughly. Customer churn and revenue churn diverge when ARPA differs across customers. If you must estimate, use a revenue churn assumption: Churned MRR ≈ Starting MRR × revenue churn rate (for the same period).
For a 12-month view, do I just multiply monthly churned MRR by 12?
No—churn compounds. Use a compounded projection: Ending MRR = Starting MRR × (1 − monthly churn)^N. Then Cumulative MRR lost = Starting MRR − Ending MRR.
Sources & Methodology