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Also known as: MRR churn, dollar churn, revenue churn rate

Revenue Churn

ConceptualMetricsFinance

Definition

Revenue Churn: Revenue churn measures recurring revenue lost from existing customers due to cancellations and downgrades, expressed as a percentage of starting revenue. Unlike logo churn (customer count), revenue churn weights losses by dollar value. High revenue churn indicates product-market fit or customer success problems.

Example Usage

“Monthly revenue churn is 2.5%—we lose $25K of our $1M MRR each month. Compounding annually, that's 26% annual churn.”

Common Misconceptions

Revenue and logo churn are equal. Large customer churn impacts revenue more; small customer churn impacts logo count.
Compare raw monthly rates. Annualize churn for meaningful comparisons: 2% monthly is ~22% annually, not 24%.
Churn is the only retention metric. Net revenue retention (including expansion) gives fuller picture.

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