Glossary

Churn

Also called churn rate, customer churn, revenue churn.

The share of paying customers, or of recurring revenue, that stops in a period.

Customer churn is customers who stopped paying in a period divided by the customers you had. Stripe divides customers lost in the last 30 days by the active customers 30 days ago plus the new ones since (Stripe).

Revenue churn is the MRR lost to cancellations and downgrades, divided by MRR at the start. When upgrades from the customers who stay outweigh it, net revenue retention goes above 100 percent.

Example: you start the month with 200 customers and $20,000 MRR. Five customers on $50 plans cancel, and one on $2,000 cancels. Customer churn is 6 ÷ 200 = 3 percent. Revenue churn is $2,250 ÷ $20,000 = 11.25 percent. Say which one you mean. See MRR and SaaS attribution.

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