Customer and revenue churn calculator
Calculate churn from customer and revenue changes.
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How it works
Compare customer losses with recurring revenue losses for a fixed opening cohort. Customer churn counts accounts; gross revenue churn weights cancellation and downgrade losses by recurring revenue. Net revenue churn also subtracts expansion from the same existing customers, so it can be negative even when some customers leave.
A few things to know
Requires your own cohort-level classification; it does not deduce losses from total customer growth. Opening customer count and revenue must be positive. Losses use the opening revenue base, without repeated event counting. Period choice labels the output; monthly and annual rates are not interchangeable. Free accounts, delinquency, reactivation, discount changes, and customer merging need a consistent reporting policy. Revenue churn does not measure profit or cash losses. Counts and revenue are not automatically cross-validated customer by customer.
Results use your inputs. Keep all money amounts in the same currency.
When to use this tool
Losing ten customers can have very different consequences depending on which accounts leave. This churn calculator places customer churn, gross revenue churn and net revenue churn side by side for the same opening cohort. It distinguishes the number of customers lost from the recurring revenue affected, and shows how expansion among retained accounts can offset revenue losses without erasing customer departures.
- Check whether churn is concentrated among high-value or low-value accounts.
- Explain why customer count is falling while existing-cohort recurring revenue grows.
- Build a consistent monthly, quarterly or annual churn review before modeling customer lifetime contribution.
How to use customer and revenue churn calculator
Freeze the starting cohort
Choose the reporting period and enter the customers present at its beginning. Count departures from that set only. Do not subtract total ending customers from starting customers when new customers joined during the period.
Measure recurring revenue changes
Enter opening cohort recurring revenue, cancellation losses, downgrade losses and expansion from those same starting customers. Use a single monthly-normalized revenue basis; the reporting period determines which changes belong in the calculation.
Compare the three churn rates
Read account churn alongside gross and net revenue churn. Download the CSV for a cohort review and investigate the accounts behind a gap between customer and revenue loss rates.
Customer losses with negative net revenue churn
Inputs
200 starting customers; 10 lost. Starting cohort revenue 20,000; cancellation loss 1,500; downgrade loss 500; existing-cohort expansion 2,500. Reporting period: month.
Result
Customer churn is 5%. Gross revenue churn is 10%. Net revenue churn is −2.5%. The opening cohort retains 190 customers and ends with 20,500 of recurring revenue.
What it means
The business lost accounts and 2,000 of recurring revenue, but expansion added 2,500. Negative net revenue churn describes that revenue offset; it does not mean that no customers left.
Common mistakes to avoid
Including new signups in the denominator
Opening customers form the denominator for this cohort calculation. Adding customers acquired during the period can dilute the rate and obscure the experience of the starting base.
Treating customer and revenue churn as interchangeable
A small number of large accounts can create substantial revenue loss. Many small departures can create a higher account churn rate with a smaller revenue impact. Inspect both views.
Comparing different time windows
A monthly churn rate and an annual churn rate do not describe the same risk window. Label every review and avoid multiplying a monthly percentage by 12 as though retention did not compound.
Frequently asked questions
Definitions, edge cases, and practical next steps for this tool. Search all tool FAQs ↗
How do I calculate customer churn rate?
Divide customers lost from the opening cohort by the number of customers at the start, then multiply by 100. Ten departures from 200 starting customers produce 5% churn. New signups do not change this calculation, because they were not members of the opening cohort.
What does gross revenue churn include here?
This tool adds recurring revenue lost through cancellations and downgrades, divides by opening cohort recurring revenue and expresses the result as a percentage. Expansion is excluded. Document this definition when comparing reports, because another dashboard may use revenue churn to refer only to cancellation losses.
What makes net revenue churn negative?
Net revenue churn subtracts expansion from cancellation and downgrade losses before dividing by opening revenue. If expansion is larger than the losses, the numerator is negative. In the example, 2,000 of losses minus 2,500 of expansion creates −500, or −2.5% of the opening 20,000.
Can customer churn be zero while revenue churn is positive?
Yes. Customers can keep their accounts while reducing seats, usage or subscription tiers. Enter zero lost customers and the recurring downgrade amount to see that pattern. Also keep your counting unit consistent: customer accounts and individual subscriptions are not necessarily the same thing.
Do I enter total ending customers?
No. Enter the number of opening-cohort customers actually lost. Suppose you begin with 200, lose 10 and acquire 30: total ending customers are 220, but churn is still 10 ÷ 200 = 5%. Net customer growth cannot identify churn without the underlying departures.
Can I calculate churn for a quarter or year?
Yes. Select the matching period and collect losses and expansions over that window, using the cohort present at its start. Keep revenue normalized consistently. The selector labels the result; it does not annualize a monthly rate or estimate future churn from a partial period.
Why are zero opening bases or excessive losses rejected?
The rates divide by starting customers and starting revenue, so both must be positive. Revenue losses measured against the opening cohort cannot exceed that opening base in this model. If your event totals do, review repeated upgrades and cancellations rather than treating every billing event as another opening-base loss.
What should I investigate after a high churn result?
Review the affected accounts by plan, tenure, acquisition source and reason for leaving. Separate voluntary cancellations from payment-related losses using a documented policy. Then compare retention and modeled LTV using the same cohort. An aggregate percentage alone cannot explain a product or service problem.
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Sources and method
Use the references below to check definitions and platform guidance. The model’s scope and limits are explained above. Read our editorial standards.