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.

## Chart Notes

- Get to know how charts work in ChartMogul.
- Familiarize yourself with the
**Churn Rate Formula**and**Churn Recognition**settings in ChartMogul and make sure you’ve configured these to support your needs. - Learn more about net MRR movements, which ChartMogul uses to calculate gross MRR churn rate.
- Review how ChartMogul handles contraction and churn in the lifecycle of a subscription.
- Non-recurring payments do not contribute to this chart.

## Calculation

ChartMogul calculates Gross MRR Churn Rate based on your **Churn Rate Formula** setting.

### Standard Formula (B2B)

#### Formula

**(Net Churn MRR + Net Contraction MRR) ÷ Starting MRR**

#### Example

At the start of the month, you have $100 in MRR. During the month, your net churn is $10 and your net contraction is $10. Your gross MRR churn rate is 20%: ($10 + $10) / $100.

### Shopify formula (B2C)

#### Formula

**SUM (1 − ((Start of Day MRR + Daily Net Churn MRR + Daily Net Contraction MRR) ÷ Start of Day MRR))**

#### 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

- Learn more about other churn rate charts.
- See which subscriptions are scheduled to churn with CMRR.
- What is Churn? How Can It Be Negative? And What’s a Good Monthly Churn Rate?
- Net vs. Gross Revenue Churn: Best Practices