Net MRR Churn or Net revenue churn is a SaaS metric that measures revenue lost due to cancellations and downgrades. It considers new revenue from existing customers, which may include upgrades or expansion revenue.
Net MRR Churn Rate is calculated as churn MRR less expansion MRR. The result is then divided by the total MRR at the beginning of the month and multiplied by 100. Suppose Vareto's total MRR for Jan 2023 is $50,000. The churn is $2000 and the account expansion is $800. Thus, Net MRR churn will be -($2000 - $800) / $50,000 X 100 = 2.4%