Churn is the rate at which customers cancel their subscriptions (customer churn) or the rate at which revenue is lost from cancellations and downgrades (revenue churn) in a given period. It is the inverse of retention and is one of the most important metrics for subscription businesses because it directly impacts growth, LTV, and company valuation.
Customer churn: % of customers canceled in a period.
Revenue churn: % of MRR lost from downgrades and cancellations (before expansion).
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.
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%.
Counting upgrades/expansion as negative churn; ignoring involuntary churn; mixing cohorts.
Traction slide: small table with GDR/NDR and monthly logo churn; add period and cohort notes.
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