What is Revenue Churn Rate?
Also known as: MRR churn, gross revenue churn
Revenue Churn Rate is the percentage of recurring revenue lost in a period from cancellations and downgrades, before counting any expansion.
What is Revenue Churn Rate?
Revenue churn measures the dollars leaving your business. It's often more important than logo churn because it weights each customer by what they actually pay — and it directly caps your net revenue retention.
How to calculate Revenue Churn Rate
Worked example
Starting MRR is $200,000. You lose $5,000 to cancellations and $1,000 to downgrades. Gross Revenue Churn = $6,000 ÷ $200,000 = 3%.
What's a good Revenue Churn Rate?
Best-in-class SaaS keeps gross revenue churn under 1% monthly. Negative net revenue churn (expansion exceeds losses) is the gold standard.
Frequently asked questions
Gross vs net revenue churn?
Gross counts only losses. Net subtracts expansion from losses, so strong upsell can make net revenue churn negative — your existing base grows even with no new customers.
What's a good revenue churn rate?
Under 1% monthly gross revenue churn is excellent for B2B SaaS. SMB-focused products tend to run higher.