MRR Lab

MRR Churn Calculator

Calculate and visualise your churned MRR over time

On average, what is your MRR for every new customer?

$

How many customers did you have at the beginning of last month?

How many new customers do you gain per month on average?

How many customers do you lose per month on average?

What is Churn?

Churn in SaaS is when a customer cancels their paid account to your product. It comes in two flavours:

  • customer churn shows how many customers cancel their accounts in a given time period
  • revenue churn (or MRR churn) shows how much MRR is lost from customers churning over a given time period

Customer churn is useful to identify how many users are cancelling their accounts. It is the easiest way to measure churn.

Revenue churn is useful to identify the revenue impact of churn. Some customers might have bigger subscriptions than others. So churning a big customer has more impact on revenue churn than losing a small customer. However, losing a big customer or losing a small customer have the same impact on customer churn (which only counts raw number of churned customers).

Churn is often represented as churn rate in SaaS. Losing 10 customers is not a big issue for a company with 10k customers, but it is a big deal for a company with only 100 customers.

We can calculate churn rates using these formulas:

Customer Churn Rate

We can calculate a customer churn rate as "how many customers active at the start of the month canceled during the month" divided by "how many customers did we have at the start of the month".

For example, if you had 200 customers at the start of the month and 10 canceled:

Customer Churn Rate = (10 / 200) × 100% = 5%

Revenue Churn Rate

Revenue churn rate measures how much MRR you lost from customers compared to your overall MRR. For example, if you started the month with $20k MRR and lost $1k MRR from churning customers during the month:

Revenue Churn Rate = ($1,000 / $20,000) × 100% = 5%

Using a churn rate is helpful because it accounts for the total revenue of your SaaS. Churning $1k MRR might be painful if you only have $5k MRR (20% revenue churn rate), but not an issue for a company with $100k MRR (1% churn rate).

How to use this calculator

This calcualtor forecasts your churn over time. To simplify usage, it assumes that customer churn rate and revenue churn rate are equal.

  1. Enter your average MRR per customer. If you only sell one plan, then this is the price of that plan.
  2. Input your current number of customers
  3. Add the number of new customers gained per month
  4. Input the number of customers lost per month

The calculator will show you forecasts for MRR and MRR lost from churn each month.

Related Metrics

  • Net Revenue Retention (NRR)
  • Customer Lifetime Value (LTV)
  • Customer Acquisition Cost (CAC)
  • MRR Growth Rate