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.
Measured as
Revenue churn = revenue lost / starting revenue (same cohort and period)
Operator takeaway
- Track revenue churn when customer sizes vary a lot.
- Use GRR to measure churn + downgrades without expansion.
- Keep Revenue Churn consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Quantify the impact with Gross Revenue Churn Calculator if you need to turn the definition into an operating assumption.
- Read GRR (Gross Revenue Retention): definition, formula, how to calculate if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
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.