Negative Net MRR Churn — What Does It Mean?
When expansion MRR exceeds churned MRR, you achieve negative net revenue churn — a best-in-class SaaS metric that drives compounding growth.
How to use this tool
- Enter active paying customers, average revenue per user (arpu), new mrr this month, expansion mrr and churned mrr in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your total mrr and the full breakdown beneath it.
Negative churn occurs when expansion revenue from existing customers exceeds revenue lost to churn — this calculator shows when you've hit that milestone.
Frequently asked questions
- What counts as MRR?
- Only normalised, recurring subscription revenue counts. Annual plan revenue should be divided by 12 to get the monthly portion. One-time fees, setup fees, and usage overage charges are typically excluded.
- How do I grow MRR?
- MRR grows through four levers: new customers (new MRR), upsells (expansion MRR), reactivations (reactivation MRR), and preventing cancellations (reducing churned MRR). Net new MRR = new + expansion - churned.