What is revenue churn rate?

Revenue churn rate (also called MRR churn rate) is the percentage of monthly recurring revenue lost from existing customers in a given period due to cancellations or downgrades.

What is a good monthly revenue churn rate for SaaS?

For SMB SaaS, 1–2% monthly churn (roughly 11–22% annually) is typical. Enterprise SaaS should target below 0.5% monthly. Negative net revenue churn — where expansion offsets cancellations — is the best-case scenario.

What is the difference between gross and net revenue churn?

Gross revenue churn counts only lost MRR from cancellations and downgrades. Net revenue churn subtracts expansion MRR from upgrades and new seats, so it can be negative (a positive sign).

How is annualized churn calculated?

Annualized churn = 1 − (1 − monthly churn rate)^12. This compound formula is more accurate than simply multiplying monthly churn by 12, which overstates the annual figure.

Should I include new MRR in the churn calculation?

No — new MRR from new customers does not affect churn. Only revenue lost from existing customers counts toward gross churn. Expansion MRR from existing customers affects net churn only.

Revenue Churn Calculator

Enter your starting MRR and lost MRR to calculate monthly and annualized revenue churn rates.

Revenue Inputs

MRR at Start of Period ($)

Total recurring revenue from existing customers at the beginning of the month.

Churned MRR ($) (cancellations + downgrades)

Optional — for Net Revenue Churn

Expansion MRR ($) (upgrades + upsells)

Gross Revenue Churn

Monthly Rate

—

Annualized Rate

—

Churned MRR

—

Lost ARR Run-Rate

—

Net Revenue Churn

Monthly Rate

—

Annualized Rate

—

Net MRR Change from Existing Customers

—

Revenue Retention

Gross Revenue Retention

—

Net Revenue Retention

—

NRR —

Summary

Enter your starting MRR and lost MRR to calculate monthly and annualized revenue churn rates.

How it works

Enter your MRR at the start of the period.
Enter the MRR lost to cancellations and downgrades during that period.
Optionally enter new and expansion MRR to see net revenue churn.
The calculator shows monthly churn rate, annualized churn rate, and lost ARR.
Adjust inputs to model different retention scenarios.

Use cases

Track monthly revenue churn as a key SaaS health metric.
Compare gross churn vs. net revenue churn after expansion.
Project annual revenue loss from current churn trends.
Present churn data to investors or board members.
Set churn reduction targets and measure progress over time.
Benchmark your churn rate against SaaS industry standards.

Frequently Asked Questions

Last updated: 2026-06-11 · Reviewed by Nham Vu