Gross Churn Coverage
How many times new MRR covers the revenue you lost to churn — is fresh business outrunning cancellations?
What is it?
Gross Churn Coverage is how many times your new MRR covers the MRR you lost to churn in the same period — new MRR divided by churn MRR. It answers a blunt question: is fresh business outrunning cancellations, and by how much?
Above 1× means acquisition more than replaces what churned; below 1× means you are refilling a leaking bucket and shrinking despite winning new logos. It deliberately ignores expansion, so it is a stricter test than net new revenue.
How to calculate?
Divide new MRR by churn MRR for the period. Four thousand in new MRR against twelve hundred in churn is 3.3× coverage. It uses only first-time revenue and full cancellations — expansion and contraction sit outside it by design.
Use it alongside the quick ratio: coverage isolates the acquisition-versus-churn battle, while the quick ratio folds in expansion and reactivation for the fuller picture.