What is the difference between customer churn and revenue churn?

Customer churn counts accounts lost; revenue churn measures recurring revenue lost. Net revenue churn subtracts expansion MRR and can be negative if upsell exceeds losses.

How do you calculate net revenue retention?

NRR = 1 − Net Revenue Churn. Net Revenue Churn = (Churned MRR + Downgrades − Expansion) / Starting MRR.

How to calculate churn percentage for a quarter?

Quarterly Churn = (Lost in Quarter / Start of Quarter) × 100. To find a monthly equivalent: monthly = 1 − (1 − quarterly)^(1/3).

How is churn rate calculated for subscriptions with trials?

State inclusion rules. Many teams exclude free trials from denominators; count paying subscribers only when computing subscription churn rate.

Churn Rate Calculator

Q: How do you calculate churn rate?

Churn rate = (Customers Lost / Starting Customers) × 100. Customers lost can be derived as Start + New − End for the period.

Q: What is the churn rate formula?

Customer churn formula: lost customers divided by starting customers. Revenue churn formula: (churned MRR + downgrades) divided by starting MRR; net revenue churn subtracts expansion.

Q: How to calculate monthly churn rate?

Use the same formula with monthly counts: Monthly Churn = (Customers Lost in Month / Customers at Month Start) × 100.

Q: How to convert monthly churn to annual churn?

Annual Churn = 1 − (1 − Monthly Churn)^12. The inverse is Monthly Churn = 1 − (1 − Annual Churn)^(1/12).

Ready

Method Start + New − End Start & Lost

Customers at Start

Starting active customers

New Customers

New logos during the period

Customers at End

Ending active customers

Period

Starting MRR ($)

MRR at start of period

Churned MRR ($)

Lost due to cancellations

Downgrade MRR ($)

Contraction from plan changes

Expansion MRR ($)

Upsells / seat growth

Type Gross Net GRR / NRR

Monthly Churn (% or decimal)

Enter either monthly or annual

Annual Churn (% or decimal)

Leave one blank to convert

Monthly to Annual Churn Formula

Annual Churn = 1 − (1 − Monthly Churn)¹²

Inverse: Monthly Churn = 1 − (1 − Annual Churn)^1/12

Churn Rate

0.00%

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Retention

100.00%

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Extra

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Retention Quality

Annualized: — GRR: — NRR: —

Use the inputs to calculate customer churn, revenue churn, and monthly–annual conversions.

Churn Rate Formula and Examples

The churn rate formula shows how many customers or how much revenue you lost in a period. Use this churn calculator to calculate customer churn, perform subscription churn rate calculation, and run revenue churn calculation for MRR.

Customer Churn Rate Equation

Churn Rate = (Customers Lost ÷ Starting Customers) × 100

Derive lost customers with Start + New − End. Works for monthly churn rate calculation and quarterly or annual periods.

Revenue Churn Rate (Gross and Net)

Gross = (Churned MRR + Downgrades) ÷ Starting MRR

Net = (Churned + Downgrades − Expansion) ÷ Starting MRR

Net revenue churn can be negative when expansion outpaces losses. GRR = 1 − Gross Churn; NRR = 1 − Net Churn.

Example – How to Calculate Customer Churn Rate

Start = 1,000; New = 120; End = 1,040 → Lost = 80
Churn Rate = 80 ÷ 1,000 = 8%

Customer vs Revenue Churn

Customer churn counts logos. Revenue churn weights customers by MRR, which is essential for calculate subscriber churn rate impact.

Monthly to Annual Churn

Use the converter above. Annual Churn = 1 − (1 − Monthly Churn)¹². This is more accurate than multiplying by 12.

Benchmark Notes

Targets vary by model. Document your rules (e.g., excluding trials) so calculating churn is consistent over time.

Frequently Asked Questions

How do you calculate churn rate?

Divide customers lost by starting customers, then multiply by 100. If you don't track lost directly, compute lost = start + new − end.

What is the churn rate formula?

Churn Rate = Customers Lost ÷ Starting Customers. For revenue: Gross = (churned MRR + downgrades) ÷ starting MRR; Net also subtracts expansion.

How to calculate monthly churn rate?

Use monthly starting customers and monthly lost. The calculator supports monthly churn rate calculation and converts to annual.

How to convert monthly churn to annual churn?

Annual Churn = 1 − (1 − Monthly Churn)¹². Inverse: Monthly = 1 − (1 − Annual)^1/12.

How is churn rate calculated for subscriptions?

For subscription churn rate calculation, count paying subscribers only (excluding trials if that's your policy), then apply the same formula.

What is a good churn rate?

It depends on ICP and motion. Rather than a universal target, track your trend and compare to peers with similar price points and contract terms.