What is Revenue Churn Rate?
Share of recurring revenue lost in a period.
How to calculate it
Calculate Revenue Churn Rate as: MRR lost to churn & downgrades / Starting MRR × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
$5k of $100k MRR lost to cancellations and downgrades -> 5% revenue churn.
Example 2
$6k of $120k MRR is lost to cancellations and downgrades -> 5% gross revenue churn, though $9k of expansion makes net revenue churn negative.
Why it matters
Revenue churn rate is the share of recurring revenue lost in a period and weights churn by account value, unlike logo churn. It reveals the true financial impact of cancellations and downgrades, which can differ sharply from customer-count churn. Ignoring downgrades alongside outright cancellations understates the real revenue at risk.
Benchmark context
Near 0%, or negative once expansion is included (net revenue churn), is ideal; positive and rising revenue churn is a warning sign.
Common pitfalls
Ignoring downgrades alongside cancellations.
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