Revenue Churn Rate: The percentage of MRR lost to churn and contraction in a period. Also called MRR Churn Rate.
Formula
Revenue Churn Rate = (Churned MRR + Contraction MRR) / Beginning MRR × 100Benchmarks
- <2%: Good
- 2-5%: Average
- >5%: High (average annual churn ~4.9% for B2B SaaS)
What It Tells You
The revenue impact of churn. If revenue churn is lower than logo churn, you're losing smaller customers (often acceptable). If higher, you're losing larger customers (concerning).
Dual-Lens: Operating / Market Forms
This metric has two governed forms derived from the same Commercial Event Ledger using Attribution Taxonomy Layer tags.
Operating Form: Revenue Churn Rate (Churn-O)
MRR-weighted churn captures the economic impact of attrition. The formula is defined above: `(Churned MRR + Contraction MRR) / Beginning MRR × 100`.
- CEL Source:
- `Revenue_Event` where `event_type` ∈ (`churn`, `contraction`)
What it tells you: The operating metric because it reflects actual economic damage — losing a $50K customer hits harder than losing a $500 customer.
Market Form: Logo Churn Rate (Churn-M)
Customer-count churn treats every logo equally. The formula is defined in the Logo Churn Rate section above: `Customers lost / Customers at start × 100`.
- CEL Source:
- `Revenue_Event` where `event_type` = `churn` (full churn only — contraction is not logo churn)
What it tells you: The market metric because it is simple, comparable, and what investors benchmark.
Bridge
Revenue Churn and Logo Churn are not additive — one measures dollars, the other measures logos. The diagnostic compares the two signals: - **Churn-O high, Churn-M low →** Losing few but high-value customers (concentration risk) - **Churn-M high, Churn-O low →** Losing many small customers (long-tail churn) - The pattern tells you where to focus retention efforts and which customer segments need intervention. ---
GASP Standard v1 · Last updated