Churn rate
Churn rate is the percentage of customers or recurring revenue lost over a period because subscriptions ended. It comes in two forms: logo churn counts accounts, revenue churn counts money. A single blended churn number hides which kind is happening and why, so it is best reported with its causes.
Formula
Churn rate = customers (or MRR) lost in the period ÷ customers (or MRR) at the start of the period
How to read it
State the period (monthly or annual), the denominator (starting customers or starting MRR) and whether reactivated customers are netted off. Monthly and annual rates are not interchangeable by simple multiplication. Split voluntary cancellations from involuntary payment failures, because the fixes are different.
In Revvly
Further reading
- Why your churn rate lies, and what to track instead.
- SaaS churn benchmark: what counts as good, by stage and segment
- Churn prevention software: how to stop churn before it happens