Churn

Dimensions

MRR Churn

Customer Churn

Churn Rate

DEFINITION

Take the number of customers that you lost last quarter and divide that by the number of customers that you started with last quarter.

Formula

Churn rate = Churned customers in period / Total customers at start of period

DIMENSION

MRR Churn Rate

The rate at which MRR is renewed.

Customer Churn Rate

The rate at which your customers are cancelling their subscriptions.

Net MRR Churn Rate

The rate at which MRR is lost through downgrades and cancellations offset by account expansions.

\(Net\ MRR\ Churn\ Rate=\frac{Sum\ of\ chum\ & \ \contraction\ MRR\ -\ Sum\ of\expansion\ &\ reactivation\ MRR}{MRR\ at\ start\ of\ period}\)