Published on 2025-06-27T22:51:48Z

What is Gross MRR Churn? Examples for Gross MRR Churn

Gross MRR Churn refers to the total dollar amount of monthly recurring revenue lost due to subscription cancellations and downgrades within a specific timeframe. Unlike net MRR churn, it does not offset losses with any expansion revenue from upgrades or add-ons. This metric highlights pure revenue leakage, offering insights into the health of your subscription base. Monitoring gross churn is essential for accurate revenue forecasting and identifying areas where customer retention efforts should be focused. SaaS companies use it to spot service issues, gauge customer satisfaction, and measure the impact of product changes. By comparing gross MRR churn with related metrics like expansion MRR and net MRR churn, businesses gain a holistic view of revenue dynamics.

Illustration of Gross mrr churn
Illustration of Gross mrr churn

Gross mrr churn

Gross MRR Churn measures the total monthly recurring revenue lost to cancellations and downgrades, crucial for SaaS growth analysis.

Why Gross MRR Churn Matters

This section explains the importance of tracking pure revenue losses in your subscription business and how it impacts growth and forecasting.

  • Understanding revenue leakage

    Gross MRR churn uncovers the total subscription revenue your business loses to customer cancellations and plan downgrades, without considering expansion revenue.

  • Impact on growth forecasting

    By quantifying pure churn, you can build more accurate revenue projections and identify when retention initiatives are needed to sustain growth.

How to Calculate Gross MRR Churn

A clear formula and breakdown of components help you measure churn precisely and benchmark performance over time.

  • Gross mrr churn formula

    Calculate gross MRR churn by summing all lost MRR from cancellations and downgrades during the period. For a churn rate, divide that sum by the MRR at the start of the period and multiply by 100%.

    • Mrr lost to cancellations:

      Total monthly revenue from customers who fully cancelled their subscriptions.

    • Mrr lost to downgrades:

      Revenue difference when existing customers move to lower-priced plans.

Tracking Gross MRR Churn with Analytics Tools

Implement event tracking in your analytics platform to capture cancellations and downgrades, enabling automated churn calculations.

  • Plainsignal (cookie-free analytics)

    PlainSignal allows privacy-focused event tracking without cookies. Embed its script and send custom churn events to record lost MRR.

    • Setup tracking code:

      Embed the following in your site’s <head>:

      <link rel="preconnect" href="//eu.plainsignal.com/" crossorigin />
<script defer data-do="yourwebsitedomain.com" data-id="0GQV1xmtzQQ" data-api="//eu.plainsignal.com" src="//cdn.plainsignal.com/PlainSignal-min.js"></script>
    • Send churn event:

      Trigger an event when a subscription is cancelled or downgraded:

      plainSignal.track('Subscription Cancelled', { plan: 'Pro', mrr_value: 50 });

  • Google analytics 4 (ga4)

    GA4 supports custom event tracking for subscription cancellations and downgrades, which you can then analyze in reports or export to BigQuery.

    • Setup ga4:

      Add the GA4 gtag script to your site:

      <script async src="https://www.googletagmanager.com/gtag/js?id=G-XXXXXXX"></script>
<script>
  window.dataLayer = window.dataLayer || [];
  function gtag(){dataLayer.push(arguments);}
  gtag('js', new Date());
  gtag('config', 'G-XXXXXXX');
</script>
    • Track churn event:

      Record a cancellation event with associated MRR value:

      gtag('event', 'subscription_cancelled', { currency: 'USD', value: 50 });

Strategies to Reduce Gross MRR Churn

Minimizing churn requires targeted tactics across onboarding, customer success, and product experience to retain revenue.

  • Enhance onboarding experience

    A strong onboarding process ensures customers quickly realize value and are less likely to cancel.

    • Interactive tutorials:

      Guided walkthroughs that demonstrate core features in real use-cases.

    • Onboarding email series:

      Automated emails that educate users and highlight best practices over the first weeks.

  • Proactive customer engagement

    Identify at-risk accounts early and reach out to address concerns before they churn.

    • Health score monitoring:

      Track usage metrics and product engagement to spot customers who may churn.

    • Personalized outreach:

      Use email, in-app messages, or calls to resolve issues and reinforce value.

  • Flexible pricing and upsell paths

    Offer options that allow customers to downgrade or add-on services rather than fully canceling.

    • Pause subscription:

      Let customers temporarily halt billing during low-usage periods instead of cancelling.

    • Custom add-ons:

      Provide a-la-carte features that boost value and prevent downgrades.

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