Revenue Churn Rate
Percentage of recurring revenue lost from cancellations in a period
FORMULA
Revenue Churn Rate = (MRR Lost to Cancellations / Beginning MRR) × 100
Alternate Calculations
Net Revenue Churn
((Churned MRR - Expansion MRR) / Starting MRR) × 100What is Revenue Churn Rate?
Revenue Churn Rate measures the percentage of MRR lost due to customer cancellations, distinct from customer churn which counts by account. A customer with higher ARPU has greater impact on revenue churn than a low-ARPU customer.
Revenue churn focuses on dollar impact rather than account count. This is often more significant for SaaS companies with variable customer values.
Chart
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Sample Data
| month | startMRR | churnedMRR | churnRate |
|---|---|---|---|
| Jan | 100,000 | 4,500 | 4.5 |
| Feb | 103,000 | 4,230 | 4.1 |
| Mar | 106,636 | 3,850 | 3.6 |
| Apr | 111,336 | 3,670 | 3.3 |
| May | 117,000 | 3,510 | 3 |
| Jun | 123,000 | 3,200 | 2.6 |
Required Data Columns
MRR at StartMRR Lost to Churn