# What is Cancellation MRR Rate metric in RevenueStory?

Modified on: Mon, 30 Aug, 2021 at 12:22 PM

Percentage of Monthly Recurring Revenue lost from CANCELLED Subscriptions.
Explanation of metric

Point in time indicator of the rate at which Revenue is lost from CANCELLED Subscriptions.

How it's measured
`Cancellation MRR Rate = [(Total MRR of Churned Subscriptions during a period) / (MRR at the beginning of that period)] X 100.`

`Note: Cancellations within the same month of Activation are not included.`

Down: Good

Interpretation
• Cancellation MRR helps identifying the plan that contributes to highest Churn. It is a good indicator to determine need for optimising current pricing.
• Example: In a given period, 200 Customers are on Plan A (\$10/month). 15 Customers unsubscribe the service during next billing cycle.
Total MRR of Churned Subscriptions during a period = (15 X 10) = \$150,
MRR at the beginning of that period = 200 X 10 = \$2,000,
Cancellation MRR Rate = [(150 / 2000) X 100] = 7.5%.

Click here to know about other metrics.

Did you find it helpful? Yes No

Send feedback