Net MRR Churn (Rate) Calculator

What is Net MRR Churn Rate? Net MRR churn rate is the net percentage of Starting MRR from existing customers lost over a period after accounting for Expansion MRR, Contraction M...

Net MRR Churn (Rate) Calculator

Calculate Net MRR Churn Rate for existing customers: (Churned MRR + Contraction MRR − Expansion MRR) ÷ Starting MRR. Net churn can be negative when expansion outweighs losses.

$

MRR from your existing customer base at the beginning of the period. Exclude New MRR from customers acquired during the period.

$

Upsells from existing customers during the period (upgrades, added seats, usage, add-ons). Enter as a positive amount.

$

Revenue lost from downgrades by existing customers who remain active during the period. Enter as a positive amount.

$

Revenue lost from existing customers who canceled during the period. Enter as a positive amount.

Scenarios
Load common profiles to see how expansion offsets contraction and churn (all values are for the same period).
PLG – net expansionSteady bookChurn pressureContraction signal

Results

  • Net MRR churn rate— %
  • Net change in existing-customer MRR$
  • Ending MRR (existing customers)$

Enter your inputs above to calculate the results.

What is Net MRR Churn Rate?

Net MRR churn rate is the net percentage of Starting MRR from existing customers lost over a period after accounting for Expansion MRR, Contraction MRR, and Churned MRR.

It matters because it directly reflects recurring cash flow durability, the quality of revenue growth, and the economics behind LTV, CAC Payback Period, and long-term value creation.

Formula

Net MRR Churn Rate = (Churned MRR + Contraction MRR-Expansion MRR) / Starting MRR × 100
Net Change in Existing-Customer MRR = Expansion MRR-Contraction MRR-Churned MRR
Ending MRR (Existing Customers) = Starting MRR + Net Change in Existing-Customer MRR

Example

Starting MRR (existing customers): $120,000

Expansion MRR: $12,000

Contraction MRR: $5,000

Churned MRR: $7,000

Net change in existing-customer MRR: $12,000 − $5,000 − $7,000 = $0
Ending MRR (existing customers): $120,000 + $0 = $120,000
Net MRR churn rate: (($7,000 + $5,000 − $12,000) div $120,000) × 100 = 0.0%

How to Use the Net MRR Churn (Rate) Calculator

Frequently Asked Questions

What’s the correct Net MRR Churn Rate formula (with expansion, contraction, and churn)?

Use: Net MRR churn rate = (Contraction MRR + Churned MRR − Expansion MRR) ÷ Starting MRR. It isolates existing-customer MRR movement only.

Can Net MRR churn be 0% even if some customers churned?

Yes. If expansion offsets contraction + churn (e.g., upgrades fully cover downgrades and cancellations), net churn can be 0% (or even negative).

What does a negative Net MRR churn rate mean?

It means “net negative churn”: expansions from existing customers are larger than the MRR you lost from downgrades + churn—your existing base is growing without counting new customers.

Should I include new customer MRR in this calculator?

No. Starting MRR and all movements here should reflect existing customers only; new customer MRR belongs in Net New MRR / New MRR tracking.

Sources & Methodology