Average Churn Amount
The typical size of a cancellation — not how many customers you lost, but how big they were.
What is it?
Average Churn Amount is the typical size of a cancellation — total Churn MRR divided by the number of churned customers. It answers a question the churn rate cannot: not how many customers you lost, but how big they were.
Two companies with the same logo churn can be in very different shape. A high average churn amount means you are losing your larger accounts, which is far more damaging than shedding small ones at the same rate.
How to calculate?
Divide total Churn MRR by the number of customers who cancelled in the period. Cancellations at $49, $99 and $149 average $99. Keep contraction out of it — this counts full cancellations only.
Segment it: a blended average can hide that your enterprise tier is churning at twice the dollar size of your self-serve tier, which changes where you spend retention effort.