Churn Rate Calculator

The Churn Rate Calculator measures customer loss and recurring-revenue loss over one reporting period. It reports customer churn, retention, gross revenue churn, and net revenue churn.

Churn formulas

Use starting and ending customer counts, customers added, starting monthly recurring revenue (MRR), lost MRR, and expansion MRR from the same period.

$\text{Customers lost}=\text{Starting customers}+\text{New customers}-\text{Ending customers}$

$\text{Customer churn}=\frac{\text{Customers lost}}{\text{Starting customers}}\times100$

$\text{Gross revenue churn}=\frac{\text{Lost MRR}}{\text{Starting MRR}}\times100$

$\text{Net revenue churn}=\frac{\text{Lost MRR}-\text{Expansion MRR}}{\text{Starting MRR}}\times100$

Worked example

Starting with 1,000 customers, adding 80, and ending with 1,030 means 50 customers were lost, so customer churn is 5%. If starting MRR is $100,000, lost MRR is$6,000, and expansion MRR is $2,000, gross revenue churn is 6% and net revenue churn is 4%.

Interpreting the result

Negative net revenue churn means expansion revenue exceeded lost MRR; it does not mean no customers churned. Compare cohorts and periods consistently because annual and monthly rates are not interchangeable.

Limitations

The calculator assumes the supplied reconciliation is complete. It does not distinguish voluntary from involuntary churn, account for reactivations, or convert monthly to annual churn.