Revenue Metrics

Churned MRR

Monthly recurring revenue lost from customers who cancelled their subscription entirely during the period.

Churned MRR is the most direct financial expression of customer loss. Every cancelled subscription removes its full monthly value from the MRR base permanently — unlike contraction MRR, which is a partial reduction, churn removes the account entirely. High churned MRR compounding over time creates a leaky bucket problem: the business is constantly refilling a bucket that loses value just as fast. At 5% monthly churned MRR, a business loses more than half its revenue base annually before accounting for new customers. This means an enormous proportion of sales and marketing effort is spent replacing lost revenue rather than growing beyond it. Understanding why customers churn — through exit surveys, win-loss analysis, and cohort data — is often the highest-leverage activity for improving the fundamental health of a SaaS business.