Direct answer
Customer churn measures the share of starting customers lost, while revenue churn measures recurring revenue lost through cancellations and often contraction; they weight the same period differently.
What this calculation tells you
Customer churn describes logo continuity; revenue churn describes monetary erosion. Together they reveal whether departures are concentrated among small or large accounts.
Expansion can offset lost revenue in a net measure but should not erase the visibility of gross losses.
Where it is used
B2B SaaS
Compare account churn with contract-value churn and concentration.
Consumer subscriptions
Track subscriber loss alongside plan and price mix.
Managed services
Separate cancellations, downgrades and expansion in recurring retainers.
Membership organizations
Align renewal eligibility with dues value and grace periods.
Common situations
- Few enterprise accounts leave.
- Many low-value users cancel.
- Remaining customers upgrade.
- Downgrades occur without account cancellation.
Use separate denominators
Customer churn divides lost eligible customers by starting customers. Revenue churn divides lost recurring revenue by starting recurring revenue under a stated gross or net definition.
Preserve gross loss
Netting expansion can make the revenue base look stable while product or service problems drive cancellations. Report gross loss and expansion separately.
Segment concentration and tenure
Plan, account size, cohort, region and tenure can explain why logo and revenue rates diverge. Avoid unstable conclusions from tiny groups.
Align timing and eligibility
Use contract renewal, cancellation effective date and delinquency rules consistently. Involuntary payment failure may deserve a separate operational view.
- Show lost counts and amounts.
- Define contraction.
- Reconcile to MRR movements.
Practical questions
Frequently asked questions
Can customer churn rise while revenue churn falls?
Yes, if lost customers are smaller or expansion among retained customers offsets some revenue loss.
Is revenue churn the same as net revenue retention?
They are related, but NRR usually expresses the remaining base after churn, contraction and expansion.
Should downgrades count as churn?
They normally affect revenue contraction rather than customer churn because the account remains.
Further reading
Authoritative sources
Use these primary and professional resources to check definitions, conventions, or requirements that may extend beyond this guide.