Churn is the percentage of customers or revenue your SaaS business loses over a set period. High churn means users aren’t finding enough value to stick around — and that’s bad news for growth.

The Two Main Types of Churn

• Customer Churn (Logo Churn): % of customers who cancel.
  
• Revenue Churn: % of revenue lost from cancellations or downgrades.
  Revenue churn is often more critical because it directly impacts forecasts and growth targets.
  
  

Key Churn Formulas

1. Gross Revenue Churn Rate

‍How much revenue you lose from existing customers (ignores upsells).

(Revenue Lost ÷ Starting MRR) × 100

Example: Lose $10K from $100K MRR → 10% gross churn.

2. Net Revenue Churn Rate

‍Accounts for expansion revenue from upsells/cross-sells.

((Revenue Lost – Expansion Revenue) ÷ Starting MRR) × 100

Example: $10K lost – $5K expansion from $100K MRR → 5% net churn.

3. Customer Churn Rate

(Customers Lost ÷ Customers at Start) × 100

Example: Lose 25 out of 500 → 5% churn.

Why Churn Matters

For SaaS CFOs, churn affects:

• Revenue stability & forecasting
• Customer Lifetime Value (CLV)
• Investor confidence
• Product-market fit insights

How TrueRev Helps You Stay Ahead of Churn

• Real-time churn and retention tracking
• Alerts for at-risk customers
• Automated, accurate revenue reporting
  
  

Bottom line: Churn happens — but tracking it precisely is the first step to reducing it. TrueRev gives finance teams the tools to see problems early, act fast, and keep customers longer.

See TrueRev in action: Book a demo