MRR Churn Calculator
Calculate monthly recurring revenue churn from cancellations, downgrades, failed payments, and recoveries. See how much MRR actually leaves the business each month.
Net MRR lost
$3,100
MRR churn rate
6.20%
Additional recoverable (est.)
$315
35% of unrecovered failed payments
How it works
Net MRR lost = Cancelled + Downgrades + Failed payments − Recovered. MRR churn rate = Net MRR lost / Starting MRR. The calculator also estimates additional recoverable MRR by assuming a conservative 35% recovery rate on the failed-payment bucket you haven't recovered yet.
Example calculation
- Starting MRR: $50,000
- Cancelled MRR: $1,800
- Downgrade MRR: $400
- Failed payment MRR: $1,200
- Recovered MRR: $300
- Net MRR lost = 1800 + 400 + 1200 − 300 = $3,100
- MRR churn rate = 3100 / 50000 × 100 = 6.2%
- Additional recoverable ≈ (1200 − 300) × 35% = $315
When to use this
Use this when you need to break MRR churn into its components, especially failed payments. Most founders count cancellations and stop. The recoverable bucket is usually larger than the voluntary churn bucket.
What to do next
Failed payments are the cheapest churn to recover. Use the Failed Payment Recovery Playbook to draft a 3-email sequence, then map the rest with the Churn Leak Report.
Frequently Asked Questions
What is MRR churn?
MRR churn is the monthly recurring revenue you lost during a period. It bundles cancellations, downgrades, and failed payments into a single dollar figure. Divide by starting MRR to get the MRR churn rate.
Does MRR churn include failed payments?
Yes. Failed payments are involuntary churn and absolutely count. If you exclude them, you understate the leak. Most SaaS founders find that 8-15% of attempted charges fail every month, and a chunk of that becomes churn.
What is recoverable MRR?
Recoverable MRR is the portion of churned MRR you could realistically bring back. Failed payments are the most recoverable. A basic dunning sequence pulls back 30-50%. Voluntary cancellations are harder, but reason-matched win-back can recover 5-10%.
What's a healthy MRR churn rate?
Under 1% monthly is healthy for enterprise SaaS. Most SMB SaaS sits between 3-5% monthly. Above 5% monthly MRR churn caps how fast you can grow, because acquisition has to outrun the leak.
How ChurnNote helps
ChurnNote helps recover failed payments, understand cancellations, and queue win-backs.
ChurnNote connects to Stripe or Lemon Squeezy and automatically captures cancellation reasons, recovers failed payments, and queues win-back emails. So you stop losing revenue silently.
Start recovering churnNext step
Estimate your recoverable failed-payment MRR
The Failed Payment Recovery Calculator turns failed charge volume into a recovery target.
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