Chart: Gross MRR Churn Rate

If you're new to ChartMogul, get to know how charts work.

Gross MRR churn rate charts the percentage of recurring revenue lost due to contraction and churn over time.

To view your MRR churn rate offset by expansion and reactivation, use Net MRR Churn Rate.

Since this metric only looks at what your business is losing, it can never be negative, and your gross MRR churn rate will always be higher than your net MRR churn rate.

TL;DR

Gross MRR churn rate charts the loss of recurring revenue due to contraction and churn over time. For SaaS businesses with more than $10,000 of MRR, this rate is typically 4–5% per month.

What is a good gross MRR churn rate?

Ideally, you want your gross MRR churn rate to be as low as possible. In our analysis of data from SaaS businesses, the lower your business’s average revenue per account (ARPA), the higher your churn rate. 

A SaaS business making less than $10,000 of MRR can expect a relatively high churn rate, e.g., 8–9% per month. However, once the business attains approx. $10,000 in MRR, the rate of churn typically stabilizes to 4–5% per month.

Learn more on our blog. 

Chart Notes

Calculation

ChartMogul calculates Gross MRR Churn Rate based on your Churn rate formula setting.

Standard Formula (B2B)

Formula

Math equation: open paren sum of churn and contraction MRR for the period close paren divided by MRR as the start of the period

Example

At the start of the month, you have $100 in MRR. During the month, you lose $10 to churn and $10 to contraction, while one customer increases their MRR by $10. Your gross MRR churn rate is 20%: ($10 + $10) / $100.

Shopify formula (B2C)

Formula

Math equation: sum of 1 minus open paren open paren MRR at the start of the day plus Churn and Contraction MRR that day close paren divided by MRR at the start of the day close paren

Example

At the start of the day, you have $100 in MRR. At the end of the day, you have $95 in MRR. Your gross MRR churn rate is 5%: 1 − ((100 − 5) / 100).

Chart Data

See Chart Data.

Next steps

Was this article helpful?