1. What is Revenue Churn?

Revenue Churn measures the percentage of revenue lost from existing customers in a given period. It's a key metric for subscription-based businesses to understand revenue stability and customer retention.

2. How Does the Calculator Work?

The calculator uses the Revenue Churn equation:

Where:

• Lost Revenue — Revenue lost from existing customers during the period (USD)
• Total Revenue at Start — Total revenue from all customers at the start of the period (USD)

Explanation: The equation shows what percentage of your starting revenue was lost during the measurement period.

3. Importance of Revenue Churn Calculation

Details: Tracking revenue churn helps businesses understand customer satisfaction, product-market fit, and revenue predictability. Lower churn indicates better customer retention and business health.

4. Using the Calculator

Tips: Enter the dollar amount of revenue lost from existing customers and your total revenue at the start of the period. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good revenue churn rate?
A: Typically under 5% monthly is good, but varies by industry. Negative churn (from expansion revenue) is ideal.

Q2: How is revenue churn different from customer churn?
A: Customer churn counts lost customers, while revenue churn measures lost dollars, which accounts for different customer values.

Q3: What time period should I measure?
A: Monthly is common, but choose a period that matches your business cycle and reporting needs.

Q4: Should I include downgrades in lost revenue?
A: Yes, any reduction in revenue from existing customers should be included.

Q5: How can I reduce revenue churn?
A: Improve customer success, identify at-risk accounts, offer value-added services, and implement retention strategies.