Revenue Churn Calculator

Revenue churn measures the rate at which you lose recurring revenue, and this calculator works it out from the dollars you shed each period. While customer churn counts how many customers leave, revenue churn counts the money that leaves, which matters more because not all customers are worth the same. Losing a handful of small accounts is very different from losing one large one, and revenue churn captures that by tracking lost MRR rather than lost logos. Gross revenue churn adds together the recurring revenue lost to cancellations and to contraction, where customers downgrade to a cheaper plan, and expresses it as a percentage of the revenue you started with. It is the mirror image of gross revenue retention, and keeping it low is essential, because revenue leaking from your existing base must be replaced by new sales just to stand still. This calculator makes it clear. You enter your starting MRR and the churned and contraction MRR over the period, and it returns your monthly revenue churn rate, the annualised equivalent, the total MRR lost, and the starting figure. The results update as you type. Use it to monitor revenue leakage, to set retention targets, or to understand how much of your growth is being eaten by churn. The monthly revenue churn rate is the churned plus contraction MRR divided by the starting MRR. Annualising it compounds the monthly rate over twelve months to show the yearly drag. A high revenue churn rate is one of the most dangerous signals in SaaS, because it forces ever-greater acquisition spend to offset losses and caps how large the business can grow. Reducing it, by improving the product, onboarding and support so customers stay and keep their plans, has an outsized effect on long-term value, which is why retention is so central to subscription economics.

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8%
monthly revenue churn rate
Annualised63.2%
MRR lost$8,000
Starting MRR$100,000

Revenue churn = (churned + contraction MRR) / starting MRR. Annualised compounds the monthly rate over 12 months. Counts lost revenue, not lost customers.

How it works

The monthly revenue churn rate adds the recurring revenue lost to cancellations and to contraction, then divides by the starting MRR. The annualised rate compounds this monthly loss across twelve months, showing the yearly impact, which is larger than simply twelve times the monthly rate because of compounding.

Worked example

Starting with $100,000 of MRR and losing $5,000 to churn plus $3,000 to contraction, the total lost is $8,000, so the monthly revenue churn rate is 8 percent. Compounded over twelve months, that annualises to about 63.2 percent, the share of revenue the existing base would lose in a year at that rate.

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