# Contraction MRR

> Contraction MRR is a recurring-revenue metric, calculated as Downgrades, not cancellations.

Source: https://lopifi.com/glossary/contraction-mrr
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is contraction mrr?** Contraction MRR is a recurring-revenue metric, calculated as Downgrades, not cancellations.

## Formula

`Downgrades, not cancellations`

- **Category:** Recurring revenue
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** revenue