Churn vs Revenue Churn Calculator

Customer churn counts how many customers leave; revenue churn measures the value of what leaves. The gap between them reveals the customer mix. When revenue churn exceeds customer churn, higher-value customers are leaving disproportionately, which is often the more concerning pattern. When customer churn exceeds revenue churn, lower-value customers are leaving while higher-value ones stay, which is generally read as a more favourable mix.

5% customer churn with 7% revenue churn gives a +2 point gap. Higher revenue churn means the average leaving customer is higher-value than the average remaining one. Common explanations include higher-value customers disengaging or pricing changes affecting the highest-paying accounts, though the gap on its own does not identify the cause.

Strong SaaS businesses often see revenue churn run below customer churn, because higher-value customers tend to have more at stake (deeper integration, more seats, greater workflow dependence). When large accounts leave at the same rate as small ones, that pattern often points to problems at the top end of the customer base.

Run it with sensible defaults

Using customer churn of 5%, revenue churn of 7%, avg mrr lost per churn of 700, avg mrr retained of 500, the calculation works out to 2.00 pts. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The headline Churn Gap is driven entirely by two inputs — Customer Churn % and Revenue Churn % — since the gap is simply the difference between them. The other two inputs, Avg MRR Lost per Churn and Avg MRR Retained, do not change the gap; they feed the secondary Lost/Retained Ratio, which shows how the value of a leaving customer compares with a retained one.

How the math works

Gap = revenue churn % - customer churn %. Positive gap (revenue > customer): losing high-value customers. Negative: filtering out low-value.

Using this as a check-in

Running this every three months shows a trend rather than a single snapshot. One reading shows where things stand; several over time show whether they are improving. The trend matters more than any individual reading.

What this doesn't capture

The result reflects only the inputs you provide and the assumptions built into the formula. It is a simplified model rather than a complete picture, and factors specific to your situation may matter just as much.