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  4. Churn

Churn

Share of customers or revenue lost in a period.

Types of churn

Customer churn: % of customers canceled in a period.

Revenue churn: % of MRR lost from downgrades and cancellations (before expansion).

Benchmarks

Monthly logo churn: SMB < 2–3%; Mid < 1–1.5%; Enterprise often < 1% (but slower sales).

GDR target > 90–95% annually in healthy B2B SaaS.

Worked example

Logo churn: start 1,000 customers, lose 25 → 25/1,000 = 2.5% for the month.

Gross revenue churn: start $100k MRR, lose $8k → 8%.

Common pitfalls

Counting upgrades/expansion as negative churn; ignoring involuntary churn; mixing cohorts.

How to show in your deck

Traction slide: small table with GDR/NDR and monthly logo churn; add period and cohort notes.

Formulas

Customer churn (monthly)
(Lost customers in month) / (Customers at start of month)
Gross revenue churn (monthly)
(MRR lost to churn + downgrades) / (MRR at start of month)

FAQs

Related

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