Formula
Revenue Churn % = Churned MRR / Beginning MRR * 100
Interactive Widget
Chart
About Revenue Churn Rate Calculator
Revenue Churn Rate measures the percentage of recurring revenue lost to cancellations and downgrades over a period, relative to where MRR started. It is one of the most direct signals of how well a business retains the revenue it has already earned, independent of how much new revenue it adds.
Revenue churn is distinct from customer churn — losing one large enterprise customer can produce a much higher revenue churn rate than losing ten small customers, even though customer churn would show the opposite pattern. For businesses with varied contract sizes, revenue churn is usually the more meaningful number to track.
Benchmarks
Monthly revenue churn benchmarks vary sharply by segment: 3–5% monthly is typical for SMB SaaS, with best-in-class below 2%. Mid-market SaaS typically sees 1–2% monthly. Enterprise SaaS should be below 0.5% monthly. Higher churn in SMB segments is expected because smaller businesses fail or change direction more often.
This calculation mixes voluntary churn (a customer actively decides to cancel) with involuntary churn (a payment fails and the subscription lapses). Involuntary churn is typically 20–40% of total churn and is largely recoverable with a proper dunning system — separating the two gives a clearer picture of where to focus retention efforts.
Frequently Asked Questions
What is a good monthly revenue churn rate?
It depends on segment. SMB SaaS: 3–5% monthly is typical, with best-in-class below 2%. Mid-market SaaS: 1–2% monthly is healthy. Enterprise SaaS: below 0.5% monthly is standard. Comparing your churn to an overall average without accounting for segment gives a misleading benchmark.
What is the difference between revenue churn and customer churn?
Customer churn counts the number of customers lost, regardless of their contract size. Revenue churn counts the dollar value lost. A business can have low customer churn but high revenue churn if the customers who leave tend to be larger accounts — the two metrics can tell very different stories.
Should churn include downgrades, or only full cancellations?
Full revenue churn calculations typically separate contraction (customers who downgrade but stay) from churn (customers who cancel entirely), since they signal different problems and require different interventions. This calculator measures full cancellations — churned MRR — against beginning MRR.
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