Calculating churn rate in Billing

Subscription Churn Rate

The churn rate is measured by the sum of churned subscriptions in the past 30 days divided by the number of active subscriptions as of 30 days ago, plus any new subscriptions in those 30 days.

What Qualifies as Churn

Subscription churn occurs when a subscription goes from non-zero Monthly Recurring Revenue​ (MRR) to zero MRR. This means that if a customer has two paid subscriptions and cancels one of them, this will count as a single churn.

If a customer starts a subscription during that 30 day period and then churns, we will include that churned subscription in both the numerator and denominator.

A subscription that was ended and restarted will be counted as a new subscription and if that subscription ends again, it will count as a second churn.

A subscription that pauses if no payment method is provided does not count toward churn.

Trials and Canceled Subscriptions

If a subscription transitions from trialing to active, the subscription will then count towards your MRR even if the first invoice is unpaid.

Eventually, if the subscription is canceled or marked unpaid due to the unpaid invoice, the subscription will no longer count towards your MRR and will count toward your churn.

Churned Revenue

The churned revenue for a given period is a sum of lost Monthly Recurring Revenue ("MRR”) from churned subscribers. If a customer has two subscriptions and cancels both, we will count each cancellation as a churned subscription.

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