Customer churn
Customer churn measures the percentage of customers lost in a period. Revenue churn measures the percentage of recurring revenue lost due to churn.
Formulas: Customer churn = (Customers lost ÷ Customers at start) × 100%, Revenue churn = (MRR lost ÷ MRR at start) × 100%.
Inputs
Enter period start values and losses.
Summary
Churn and retention for the period.
Customer churn
4.0%
Retention
96.0%
Revenue churn
6.9%
Churn basics
Customer churn counts users who cancel or lapse during the period. Revenue churn captures the lost MRR from those churned customers.
How to use the calculator
- Enter customers and MRR at the start of the period.
- Enter customers lost and MRR lost from churn.
- Review churn percentages and retention.
Pitfalls
- Mixing customer churn with revenue churn—report both separately.
- Not normalizing for upgrades/downgrades—exclude expansion/contraction from churn inputs.