What is Gross Revenue Churn Rate (MRR)?
Gross Revenue Churn Rate (MRR) (a.k.a. Gross MRR Churn Rate) measures the percentage of your starting MRR from existing customers that you lose during a period due to cancellations (Churned MRR) and downgrades (Contraction MRR). It intentionally ignores upgrades/upsells (Expansion MRR) so you can see your pure revenue leakage from the installed base.
This matters because it directly hits revenue durability and makes growth more expensive: the higher your gross churn, the more New MRR you need just to “stand still,” and the harder it is to improve Net Revenue Retention (NRR), Gross Revenue Retention (GRR), and Net MRR Churn Rate. It also ripples into unit economics—shrinking LTV, worsening LTV:CAC (via CAC), and often signaling a pricing/packaging or customer-success issue you’ll also see in Customer Churn Rate and declining ARPA.
Formula
Example
Starting MRR (existing customers): $120,000
Contraction MRR: $4,000
Churned MRR: $6,000
How to Use the Revenue Churn Rate (Gross MRR Churn) Calculator
Frequently Asked Questions
Should expansion MRR be included in Gross Revenue Churn (MRR)?
No. Gross revenue churn counts only revenue lost from downgrades (contraction) and cancellations (churn). If you subtract expansion, you’re calculating net revenue churn instead.
What exactly counts as Contraction MRR vs. Churned MRR?
Contraction MRR is MRR lost from existing customers who downgrade (fewer seats, lower plan, reduced usage). Churned MRR is MRR lost from customers who cancel or don’t renew.
Why is my revenue churn rate different from my customer churn rate?
Revenue churn is $-weighted. Losing one large account can spike revenue churn even if customer churn is low (and vice versa).
How do I translate Gross Revenue Churn into Gross Revenue Retention (GRR)?
For the same period, GRR% = 100% − Gross Revenue Churn%.
Sources & Methodology