Definition
Revenue churn weights each lost customer by what they paid. Losing ten small accounts may matter less than losing one large one; revenue churn shows that, logo churn does not.
Formula
MRR churnGross MRR churn rate = (Churned MRR + Contraction MRR) ÷ Starting MRR
Example
Demo Co lost $3.1K to churn and $1.9K to contraction on $246.1K of starting MRR in October: gross MRR churn of 2.0% for the month.
Benchmarks
Annualized gross revenue churn under 10% is healthy for B2B; the mirror image of GRR above 90%.
Common mistakes
- Netting expansion against churn and calling it churn.
- Counting involuntary churn that was later recovered.
Examples use Demo Co, a fictional $3M ARR SaaS company, or a generic company where noted. Benchmarks are common reference points, not targets for every business.