## Key Performance Indicators Examples

#### Revenue Churn / MRR Churn

Revenue Churn, also known as MRR (Monthly Recurring Revenue) Churn, is a metric used to measure the rate at which a company is losing revenue from its customers. It is typically expressed as a percentage and is calculated by taking the total amount of revenue that was lost from customers during a specific period (usually a month) and dividing it by the total amount of revenue that was generated during the same period.
The formula for calculating Revenue Churn is:

Revenue Lost from Cancelled Contracts / Total Revenue x 100 = Revenue Churn (%)

For example, if a company generated \$10,000 in revenue in a month and lost \$2,000 in revenue from cancelled contracts, the Revenue Churn would be:

\$2,000 / \$10,000 x 100 = 20%

This means that 20% of the company’s revenue was lost from customer cancellations during that month. A low Revenue Churn rate is generally considered to be a good sign as it indicates that a company is retaining its customers effectively, while a high Revenue Churn rate may be a sign of a problem that needs to be addressed