Accounting Churn Rate (Monthly) Calculator Examples
Worked monthly churn scenarios showing customer churn, revenue churn, expansion revenue, new MRR, and ending MRR.
These examples show how the calculator separates customer losses from recurring revenue retention. Each scenario uses the same monthly framework but highlights a different pattern: stable retention, high-value customer loss, and expansion-led retention.
Small bookkeeping firm with steady growth
Opening base: 40 clients and $8,000 MRR.
Input Summary
Starting customers
40
Customers lost
1
Starting MRR
$8,000
Churned MRR
$200
Expansion MRR
$150
New MRR
$700
Calculation Breakdown
- 1Customer churn(1 / 40) × 1002.50%
- 2Gross revenue churn(200 / 8000) × 1002.50%
- 3Net revenue churn((200 - 150) / 8000) × 1000.63%
- 4Ending MRR8000 - 200 + 150 + 700$8,650
Result Summary
Ending MRR
$8,650
Accounting Churn Rate (Monthly) Calculator
Customer churn is 2.50%, net revenue churn is 0.63%, and ending MRR is $8,650.
Subscription business with a high-value cancellation
Opening base: 200 customers and $50,000 MRR.
Input Summary
Starting customers
200
Customers lost
3
Starting MRR
$50,000
Churned MRR
$4,500
Expansion MRR
$500
New MRR
$6,000
Calculation Breakdown
- 1Customer churn(3 / 200) × 1001.50%
- 2Gross revenue churn(4500 / 50000) × 1009.00%
- 3Net revenue churn((4500 - 500) / 50000) × 1008.00%
- 4Ending MRR50000 - 4500 + 500 + 6000$52,000
Result Summary
Ending MRR
$52,000
Accounting Churn Rate (Monthly) Calculator
Customer churn is 1.50%, but net revenue churn is 8.00%; ending MRR is $52,000.
Expansion exceeds lost recurring revenue
Opening base: 80 customers and $24,000 MRR.
Input Summary
Starting customers
80
Customers lost
2
Starting MRR
$24,000
Churned MRR
$600
Expansion MRR
$1,200
New MRR
$0
Calculation Breakdown
- 1Customer churn(2 / 80) × 1002.50%
- 2Gross revenue churn(600 / 24000) × 1002.50%
- 3Net revenue churn((600 - 1200) / 24000) × 100-2.50%
- 4Ending MRR24000 - 600 + 1200 + 0$24,600
Result Summary
Ending MRR
$24,600
Accounting Churn Rate (Monthly) Calculator
Customer churn is 2.50%, net revenue churn is -2.50%, and ending MRR is $24,600.
How to Read Your Results
Customer churn shows the share of opening customers lost, not the share of customers remaining at month end.
Gross revenue churn shows the impact of cancellations and downgrades before expansion revenue is considered.
Net revenue churn evaluates revenue retention within the opening customer base; it excludes new-customer MRR.
A negative net revenue churn result indicates expansion MRR was greater than churned MRR.
Ending MRR includes new sales, so it should be read alongside churn metrics rather than used as a substitute for them.
Assumptions & Important Notes
- Each scenario uses a single monthly reporting period.
- All amounts are monthly recurring revenue in one currency.
- Expansion revenue is assigned only to customers active at the start of the month.
- New MRR represents new customers rather than reactivations from the opening base.
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Frequently Asked Questions
Can a business have positive MRR growth and high churn?
Yes. New customer MRR can raise ending MRR even when customer or revenue churn from the opening base is high.
Why can revenue churn be higher than customer churn?
Customers can have different recurring revenue values. Losing a small number of high-value customers can create a higher revenue churn rate.
Does negative net revenue churn mean no customers left?
No. Customers may still leave. It means expansion from remaining opening customers exceeded lost MRR.
Should downgrades be included in churned MRR?
For this calculation, recurring revenue lost through downgrades is included in churned MRR.
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