Definition
Revenue churn measures how much recurring revenue you lose (MRR dollars) over a period. It differs from logo churn.
Formula
Revenue churn = revenue lost / starting revenue (same cohort and period)
Example
If starting MRR is $100k and you lose $6k of MRR from churn and downgrades, gross revenue churn = $6k / $100k = 6% for the period.
How to use it
- Track revenue churn when customer sizes vary a lot.
- Use GRR to measure churn + downgrades without expansion.
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 "Revenue 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., Gross Revenue Churn Calculator) to sanity-check assumptions.
- Read the related guide (e.g., GRR (Gross Revenue Retention): definition, formula, how to calculate) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Gross Revenue Churn Calculator: Calculate gross revenue churn rate from contraction and churned MRR (with monthly-equivalent conversion).
- GRR Calculator: Calculate Gross Revenue Retention (GRR) from starting MRR, contraction, and churn.
- NRR vs GRR Calculator: Calculate NRR and GRR together from the same starting MRR and expansion/contraction/churn inputs.
- Price Increase Break-even Calculator: Estimate the maximum churn (immediate or ongoing) a price increase can tolerate before it destroys revenue.
- Revenue Retention Curve Calculator: Model GRR and NRR over time from monthly expansion, contraction, and churn assumptions (existing cohort only).
Guides
- 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.
- 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.
- Gross revenue churn: definition, formula, and how to calculate it: Gross revenue churn explained: contraction + churned MRR relative to starting MRR, with monthly-equivalent conversion and pitfalls.
- NRR vs GRR: differences, formulas, and how to use both: NRR includes expansion; GRR excludes it. Learn when each metric matters, how to compute both from the same cohort, and how to interpret the gap.