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Churn Grade

Cursor

cursor.com

D

Churn Health Score: 42/100

Based on 45 cancellation responses

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I graded Cursor's churn. D (42/100). Top driver: June 2025 pricing restructure broke trust. Grade yours free:

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Summary

Cursor experienced a discrete trust event in June 2025 when a pricing restructure shifted the $20/mo Pro tier from 500 fast requests to $20-of-API-usage, dropping effective heavy-user capacity by roughly 50%. CEO apology and refunds followed. A separate AI-support hallucination incident in April 2025 fabricated a non-existent lockout policy and drove cancellations. Claude Code and Windsurf absorbed measurable migration. Score is D not F because product depth and IDE integration remain best-in-class.

Priority Action

Publish an ironclad 12-month Pro pricing stability commitment with grandfather clauses for existing customers. The June 2025 change is the defining trust event in Cursor's story, and every Cursor customer now watches the pricing page with suspicion. Trust recovery beats feature velocity here.

Financial impact

At your current churn rate, you're losing approximately $3,314/mo in recurring revenue.

What to fix first

  1. 1

    Fix top churn driver

    High

    Allocate 1 sprint to solving your #1 issue. Measure impact post-ship.

    Timeline: This sprint

  2. 2

    Email churned users

    High

    Ask why they left. Collect 10+ responses. Look for patterns.

    Timeline: This week

  3. 3

    Track cohort retention

    Medium

    New vs. returning users. Slice the churn.

    Timeline: Ongoing

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Top churn drivers

  1. 1. June 2025 pricing restructure broke trust

    critical

    31% of responses · confidence 90%

    Fix: 12-month Pro pricing commitment. Grandfather existing customers on credit allowances. Separate power-user tier with pay-as-you-go so base Pro stays predictable.

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Cursor Churn Health Score: 42/100 grade D

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