Revenue churn
Revenue churn is the percentage of recurring revenue lost in a period from cancellations and downgrades. Weighting by money rather than by account shows what the losses actually cost. Gross revenue churn counts only losses, while net revenue churn also subtracts expansion and can turn negative.
Formula
Gross revenue churn = (churned MRR + contraction MRR) ÷ starting MRR
How to read it
Negative net revenue churn means expansion from the remaining customers outweighs everything lost, the same condition as NRR above 100 percent. Keep the gross figure visible, because net churn can look healthy while a large share of customers is leaving.
In Revvly
Further reading
- Logo churn vs. revenue churn: why SaaS teams need to track both.
- Why your churn rate lies, and what to track instead.