Method and assumptions
Use the same reporting window and exclude new customers from the churn denominator. Revenue churn can differ from logo churn when account sizes vary.
Logo churn = churned customers ÷ starting customers. Revenue churn = churned MRR ÷ starting MRR.
Worked scenario
Freeze the opening customer and MRR cohort at the start of a month or quarter. Count only losses from that opening base in the churn numerator; track new customers outside the denominator. Calculate logo and revenue churn together, then segment voluntary cancellations, payment failures and planned contract endings.
How to interpret the result
Logo churn describes customer count while revenue churn weights losses by account size. A lower revenue churn than logo churn usually means smaller accounts are leaving; the reverse can signal concentration risk. Annualized simple churn is only a comparison aid and should not replace a cohort survival curve when churn varies with tenure.
Input reference
- Currency
- Example default: USD
- Starting customers
- Example default: 1000
- Churned customers
- Example default: 25
- Starting MRR
- Example default: 80000
- Churned MRR
- Example default: 1800
- Reporting period (months)
- Example default: 1
Common mistakes
- Including newly acquired customers in the opening denominator.
- Mixing monthly and annual contract windows.
- Reporting net retention as if it were gross churn.
Before using the result
- Lock the cohort and period before collecting events.
- Separate logo, gross revenue and voluntary churn.
- Investigate churn by plan, tenure and acquisition channel.
Questions to check before deciding
Should new customers be in the churn denominator?
No. Period churn normally starts with the opening customer or revenue base.
Why can revenue churn be lower than logo churn?
Smaller accounts may churn more often than larger accounts.
Independent planning calculator. Not financial, tax, legal or investment advice.