Definition
Logo churn is customer churn measured in count (accounts lost), not dollars. It can be high even when NRR is strong.
Formula
Logo churn = customers lost / customers at start of period
Example
If you started with 1,000 customers and lost 30, logo churn = 30 / 1,000 = 3% for the period.
Common mistakes
- Looking only at blended logo churn (hides segment differences).
- Assuming strong NRR means churn is fine (expansion can mask losses).
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Logo Churn" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Churn Rate Calculator) to sanity-check assumptions.
- Read the related guide (e.g., Churn: How to measure churn rate correctly) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Churn Rate Calculator: Calculate customer churn rate for a period and compare retention across segments or cohorts.
- NRR Calculator: Calculate Net Revenue Retention (NRR) from starting MRR and revenue movements.
- GRR Calculator: Calculate Gross Revenue Retention (GRR) from starting MRR, contraction, and churn.
- Cohort LTV Forecast Calculator: Estimate cohort-based LTV using churn, expansion, gross margin, and optional discounting.
- Price Increase Break-even Calculator: Estimate the maximum churn (immediate or ongoing) a price increase can tolerate before it destroys revenue.
Guides
- Churn: How to measure churn rate correctly: A guide to churn rate: customer churn vs revenue churn, measurement choices, and how to track churn by cohort.
- NRR (Net Revenue Retention): definition, formula, how to calculate: NRR explained: what net revenue retention measures, the NRR formula, how to calculate it by cohort, and common mistakes.
- GRR (Gross Revenue Retention): definition, formula, how to calculate: GRR explained: gross revenue retention definition, GRR formula, how to calculate it, and why it matters alongside NRR.
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.
- LTV:CAC ratio: how to interpret the ratio (and avoid mistakes): Learn what LTV:CAC tells you, rough benchmarks, and how churn and payback change what 'good' looks like.