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Revenue Churn Rate Calculator

Enter churned MRR and starting MRR to find the revenue churn and retention rates.

Result

3.00%
97.00%
$2,400.00

How it is calculated

Revenue churn compares money, not customers: churn rate = churned MRR ÷ starting MRR × 100 and retention = 100 − churn rate. Starting MRR is the monthly recurring revenue at the start of the period; churned MRR is the recurring revenue lost during that period from cancellations (and downgrades, if you count them). Use the same currency for both and measure both over the same period. The tool also echoes the churned amount in dollars. The starting MRR must be above zero and churned MRR cannot be negative, so this is gross revenue churn: expansion revenue is not netted off, and a negative net churn cannot be entered. If churned MRR exceeds starting MRR the result is over 100% and retention turns negative.

Worked example

A subscription product starts the month with 80,000 in MRR. During the month cancellations and downgrades remove 2,400 of that recurring revenue. Churn rate: 2,400 ÷ 80,000 = 0.03, which is 3.00%. Revenue retention: 100 − 3.00 = 97.00%. The churned amount is shown as $2,400.00. Revenue from customers who joined during the month is left out, since the base is the starting MRR only.

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Common mistakes

  • Dividing by ending MRR or by the average of start and end instead of starting MRR. Starting MRR is the correct base for this ratio.
  • Including new-customer revenue in the churned or starting figure. Only the revenue that existed at the start of the period belongs in the base.
  • Mixing periods, such as a quarter's churned MRR with a single month's starting MRR, which overstates churn by about three times.
  • Mixing annual contract value with monthly figures. Both inputs must be monthly recurring revenue, or both annual.
  • Confusing revenue churn with customer churn. Losing one large account can move this number far more than the customer count, so the two rates can differ widely.

Sources

About this calculator

Revenue churn rate measures the share of recurring revenue a subscription business loses in a period, calculated as Churned MRR ÷ Starting MRR. Its counterpart, revenue retention rate, is simply 1 minus churn — the share of revenue that stuck around.

SaaS finance and customer success teams track revenue churn separately from customer churn because losing one large enterprise account can hurt revenue far more than losing many small accounts, even if the customer count barely moves. Investors and boards watch this metric closely because low revenue churn is one of the strongest signals of a healthy subscription business. This calculator shows gross churn only: it does not take expansion revenue, so it cannot show negative net churn, where expansion outpaces losses.

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Comments (1)

  • Editorial team

    A monthly churn figure compounds, so do not simply multiply it by 12. Losing 3 percent of recurring revenue every month leaves about 69.4 percent after a year, which is roughly 30.6 percent annual loss. This tool counts gross loss only, so new sales and upgrades do not offset it. Do you track churn from cancellations alone, or do downgrades count in your starting and churned figures?

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