Fix the period
Use base and MRR from the start of the month or quarter and record cancellations in the same interval.
person_remove Customer and revenue retention
How much does churn reduce your recurring revenue?
Calculate customer churn, gross and net revenue churn. Then simulate MRR, margin, and replacement cost preserved when reaching a target.
group_off Logo churntrending_down Revenue churnvisibility Transparent scenario
Notice: Rates are period metrics. MRR, revenue, retained margin, and avoided CAC are simplified scenarios, dependent on assumptions and without retention guarantee.
monitoring Customers and revenue
One rate does not explain all churn
Losing a few large customers can affect revenue more than losing many small ones. Therefore, the tool shows customer and MRR churn side by side.
Separate revenue
Cancellations and downgrades form gross churn; expansion from the base reduces net churn.
Attack the cause
Analyze reason, segment, product, time with the company, tickets, and signals before cancellation.
Questions about churn
Which formulas are used?expand_more
Logo churn = customers lost ÷ initial customers. Gross revenue churn = (canceled MRR + downgrade) ÷ initial MRR. Net churn = (canceled MRR + downgrade − expansion) ÷ initial MRR.
Is churn a recognized metric?expand_more
Yes. Stripe explains the churn formula as customers lost in the period divided by customers at the start of the period.
Why not calculate LTV as 1 ÷ churn?expand_more
That approximation requires strong stability assumptions and can lead to wrong decisions. The tool uses an explicit horizon and keeps the scenario auditable.
Can net churn be negative?expand_more
Yes. When expansion from the existing base exceeds cancellations and downgrades, there is net revenue expansion.