Revenue Churn (MRR Churn)

Revenue churn measures the recurring revenue lost from existing customers during a specific period. It includes both cancelled subscriptions and downgrades. Unlike logo churn, which counts customers equally regardless of size, revenue churn weights larger accounts more heavily.

Gross revenue churn includes all lost revenue. Net revenue churn subtracts expansion revenue (upsells and cross-sells) from the gross figure. If your expansion revenue exceeds your lost revenue, you achieve negative net revenue churn—the gold standard for SaaS businesses.

Revenue churn is particularly important for companies with variable deal sizes. Losing one enterprise customer can have a larger revenue impact than losing twenty small customers, even though the logo churn numbers tell a different story.

Analyzing revenue churn by segment, cohort, and plan tier reveals where the business is most vulnerable. Pairing this analysis with customer feedback data—NPS scores by segment, CSAT by plan tier—helps prioritize retention investments where they will have the greatest revenue impact.