Churn Rate

The percentage of customers or recurring revenue lost over a period.

Part of the Growth & SaaS Metrics course · Lesson 4 of 8

Formula

Customer Churn Rate = Customers Lost in Period / Customers at Start of Period x 100%

What it is

Churn rate measures how much of a subscription business is lost in a given period, expressed as a percentage. Customer (logo) churn counts the share of customers who cancel; revenue churn counts the share of recurring revenue lost. Revenue churn can be gross (lost revenue only) or net (lost revenue minus expansion from remaining customers).

Why it matters

Churn is the leak in the bucket: high churn forces a company to spend on new customers just to replace the ones it lost. It directly drives customer lifetime, retention, and LTV, so even small differences compound over time. Distinguishing logo churn from revenue churn matters, because losing many small accounts is very different from losing a few large ones.

How it's calculated

Divide the number of customers (or amount of recurring revenue) lost during a period by the number (or revenue) at the start of the period.

How Quintarthai uses it

Reported churn or retention figures from a company's filings can be reviewed alongside Quinn's bull/bear take on its company deep-analysis page.

Cross-border note. Churn is a non-GAAP operating metric with no regulator-set definition in Canada or the US; always confirm whether a company reports logo churn or revenue churn, and over what period, before comparing two issuers.

FAQ

What is the difference between logo churn and revenue churn?

Logo churn counts the percentage of customers lost. Revenue churn counts the percentage of recurring revenue lost, which can differ sharply if the customers who leave are unusually large or small.

Can churn be negative?

Logo churn cannot be negative, but net revenue churn can be, when expansion from remaining customers exceeds the revenue lost. Negative net revenue churn is the same as net revenue retention above 100%.

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