Calculating Subscriber Churn Rate in Billing

Question

How is churn rate determined/calculated in Stripe Billing?

Answer

Subscriber churn occurs when a customer 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, they haven’t yet churned. 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. If this customer has no other active subscriptions, it will count towards your churn as well.

The churn rate is measured by the sum of churned subscribers in the past 30 days divided by the number of active subscribers as of 30 days ago, plus any new subscribers in those 30 days. If a customer starts a subscription during that 30 day period and then churns, we will include that churned subscriber in both the numerator and denominator.

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 cancelled or marked unpaid due to the unpaid invoice, the subscription will no longer count towards your MRR. If this customer has no other active subscriptions, this will count towards your churn.