The total Monthly Recurring Revenue on the first day of the month.
Revenue lost from customers who cancelled their subscriptions entirely.
Revenue lost from existing customers downgrading their plans (Downsell).
Revenue gained from existing customers upgrading or buying add-ons (Upsell).
Gross Revenue Churn Rate:0.00%
Net Revenue Churn Rate:0.00%
How to Calculate Revenue Churn Rate
In the SaaS (Software as a Service) industry, understanding how much revenue you are losing is just as important as tracking new sales. While customer churn (logo churn) tells you how many users left, Revenue Churn tells you the financial impact of those departures.
This calculator helps you determine both your Gross Revenue Churn and Net Revenue Churn, which are critical metrics for assessing the health of your recurring revenue model.
The Difference Between Gross and Net Revenue Churn
It is vital to distinguish between the two types of revenue churn:
Gross Revenue Churn: This measures the percentage of revenue lost due to cancellations and downgrades. It does not account for any expansion revenue (upsells). It represents the "leaky bucket" in its rawest form.
Net Revenue Churn: This accounts for the revenue lost minus the revenue gained from existing customers (expansion/upsells). If your expansion revenue exceeds your lost revenue, you achieve Net Negative Churn, which is the gold standard in SaaS growth.
Revenue Churn Formulas
Use the following logic to calculate these metrics manually:
Gross Revenue Churn Rate =
[ (Churned Revenue + Contraction Revenue) / MRR at Start of Period ] × 100
Net Revenue Churn Rate =
[ (Churned Revenue + Contraction Revenue – Expansion Revenue) / MRR at Start of Period ] × 100
Example Calculation
Let's look at a practical example for a SaaS company:
Net Churn Calculation: ($2,000 + $500 – $3,000) / $50,000 = -0.01 or -1.00%.
In this example, despite losing $2,500 in revenue, the company upsold $3,000, resulting in a Net Negative Churn of -1%. This means the company grew its revenue from the existing customer base alone, without adding a single new logo.
Why is Revenue Churn Important?
High revenue churn indicates product dissatisfaction or poor customer success efforts. While high customer churn (logo churn) is bad, high revenue churn is fatal because it usually means you are losing your highest-paying enterprise customers. Tracking Net Revenue Churn allows you to see if your upsell strategies are effectively offsetting your losses.
function calculateRevenueChurn() {
// Get inputs using var
var mrrStart = parseFloat(document.getElementById('mrrStart').value);
var churnedRevenue = parseFloat(document.getElementById('churnedRevenue').value);
var contractionRevenue = parseFloat(document.getElementById('contractionRevenue').value);
var expansionRevenue = parseFloat(document.getElementById('expansionRevenue').value);
// Handle empty inputs by defaulting to 0 for calculations (except MRR Start)
if (isNaN(churnedRevenue)) churnedRevenue = 0;
if (isNaN(contractionRevenue)) contractionRevenue = 0;
if (isNaN(expansionRevenue)) expansionRevenue = 0;
// Validation: MRR Start is required and must be positive
if (isNaN(mrrStart) || mrrStart 5) {
grossResultSpan.style.color = "#dc3545"; // Red for high churn
} else {
grossResultSpan.style.color = "#28a745"; // Green for acceptable churn
}
// Interpretation Logic
var interpText = "";
if (netChurnRate < 0) {
netResultSpan.style.color = "#28a745"; // Green
interpText = "Great job! You have Net Negative Churn. Your expansion revenue is higher than your churned revenue, meaning your business is growing from existing customers.";
} else if (netChurnRate === 0) {
netResultSpan.style.color = "#ffc107"; // Yellow
interpText = "Neutral. Your expansion revenue perfectly offsets your revenue churn.";
} else {
netResultSpan.style.color = "#dc3545"; // Red
interpText = "Attention needed. You are losing revenue net of upsells. Focus on Customer Success and retention strategies.";
}
interpretation.innerHTML = interpText;
}