MRR churn formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | Starting MRR ($) | 100000 | 100000 |
| B3 | Churned MRR ($) | 2500 | 2500 |
| B4 | Contraction MRR ($) | 1000 | 1000 |
| B5 | Expansion MRR ($) | 4000 | 4000 |
| B7 | Gross MRR churn (%) | =ROUND((B3+B4)/B2*100,2) | 3.5 |
| B8 | Net MRR churn (%) | =ROUND((B3+B4-B5)/B2*100,2) | -0.5 |
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Frequently asked questions
- How do you calculate revenue churn?
- Add the MRR lost to cancellations and downgrades, divide by MRR at the start of the month and multiply by 100. $3,500 lost on $100,000 is 3.5% gross MRR churn.
- What is negative churn?
- When expansion from existing customers is larger than what you lose, net MRR churn goes below zero. In the example, $4,000 of expansion against $3,500 of losses gives −0.5% net churn.
- Is revenue churn better than customer churn?
- Track both. Customer churn counts lost accounts; revenue churn weighs them by value. Losing many small accounts and few large ones gives high customer churn but low revenue churn.
- How do you convert monthly MRR churn to annual?
- Compound it: annual churn = 1 − (1 − monthly churn)^12. A 3.5% monthly gross MRR churn is about 34.8% a year, not 42%. Use the same method every time you report it.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.