Definition
Logo retention rate is the share of customers retained over a period, excluding expansion or contraction in revenue.
Formula
Logo retention = (starting customers - churned customers) / starting customers
Example
Start with 200 customers, lose 15: logo retention is 185 / 200 = 92.5%.
How to use it
- Use alongside revenue retention to separate customer count vs revenue effects.
- Segment by plan or cohort to find churn drivers.
Common mistakes
- Including new customers in the numerator (it should be based on starting customers).
- Using logo retention to judge expansion-led businesses without context.
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 Retention Rate" 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.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Retention rate: how to measure retention correctly) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Revenue Retention Curve Calculator: Model GRR and NRR over time from monthly expansion, contraction, and churn assumptions (existing cohort only).
- Unit Economics Dashboard Calculator: Compute a unit economics snapshot: gross profit LTV, CAC payback, LTV:CAC, and break-even targets from a few inputs.
- Cohort Payback Curve Calculator: Estimate when a cohort pays back CAC using a simple retention curve (two-stage churn) and optional expansion.
- Retention Targets Planner (NRR/GRR): Compute required expansion (for a target NRR) and allowable churn+contraction (for a target GRR) using monthly rates.
- Quota Attainment Calculator: Calculate quota attainment and pacing from booked revenue to date, quota, and days elapsed in the period.
Guides
- Retention rate: how to measure retention correctly: Learn retention rate definitions, how it differs from churn, and how to measure retention by cohort and segment.
- 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.