1. Choose one reporting period
Use the same month, quarter, or year for every field.
2. Enter the opening customer count
Count active customers at the beginning of the period, before new sales.
3. Enter customer losses
Include cancellations or nonrenewals from the opening customer base.
4. Enter opening and churned MRR
Use recurring revenue at the start and the amount lost from that same base.
5. Add expansion MRR
Enter upgrades or added recurring revenue from retained customers; do not include revenue from brand-new customers.
6. Compare customer and revenue churn
Use the gap between rates to understand whether larger or smaller accounts are churning.