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.
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.
- Familiarize yourself with the Churn Rate Formula and Churn Recognition settings in ChartMogul and make sure you’ve configured these to support your needs.
- Review how ChartMogul handles contraction and churn in the lifecycle of a subscription.
- Non-recurring payments do not contribute to this chart.
ChartMogul calculates Gross MRR Churn Rate based on your Churn Rate Formula setting.
Standard Formula (B2B)
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)
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).
See Chart Data.
- 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