Churned ARR is the Annual Recurring Revenue lost from a company's existing contracts that are no longer in effect. This could be due to reasons like non-renewal or cancellation of a contract within the contract period.


Suppose ABC Co. has an ARR of $100,000 and at the time of renewal, it decides to discontinue or not renew the contract. This causes the ARR to drop to $0. Thus, Churned ARR = $100,000.

Why it matters

Churned ARR is an important metric since it highlights a company’s ability/inability to retain customers. By understanding the amount of Churned ARR, a company can discover potential issues like the efficacy of its product/services in satisfying or meeting the needs of the customers.

Get Started

Ready to see Vareto in action?

Give your finance team the tools they deserve so your company can make better, faster operational decisions.

Request a demo