Churn MRR (Monthly Recurring Income) is a metric that gauges revenue lost due to customer churn, subscription, or service cancellations over time. It is usually a proportion of the initial MRR.
To calculate Churn MRR, divide the MRR of customers who cancel within a certain period by the entire MRR at the start.
Churn MRR can significantly affect revenue growth for subscription-based or recurring revenue enterprises. A high Turnover MRR suggests a business is losing a lot of income from customer churn, which might hurt future revenue. Low Churn MRR indicates client happiness and loyalty.
Businesses can track Churn MRR and reduce it by enhancing customer service, offering retention incentives, and obtaining customer feedback. A company can also compare its churn MRR with the new MRR created by new customers in that period to get a net MRR statistic to better assess its performance.