Revenue (MRR) Churn Rate

Definition

The fraction of starting MRR lost per period to cancellations and downgrades.

Formula

Gross MRR churn = (Churned MRR + Contraction MRR) / Starting MRR

Worked Example

Starting MRR $84,000; churned $2,200; contraction $1,500:

Gross MRR churn = $3,700 / $84,000 = 4.4% per month

Note: revenue churn (4.4%) > logo churn (2.5%)
-> larger-than-average customers are leaving. Investigate.

Interpretation & Pitfalls

Comparing the two churn rates tells you WHO is leaving, not just how many.

In TupicFinance

Churned and contraction MRR come from subscription lifecycle events in the MRR bridge.