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Accounting Churn Rate (Monthly) Calculator

Calculate monthly customer, revenue and net revenue churn from your starting customers and recurring revenue activity.

Your Details

Overview

Use this monthly churn rate calculator to estimate the percentage of customers and recurring revenue your business loses each month. Enter your opening customer count, cancellations, starting recurring revenue, lost revenue, expansions and new revenue to review customer churn and revenue retention.

How it works

Customer churn is customers lost divided by customers at the start of the month. Gross revenue churn is recurring revenue lost divided by starting recurring revenue. Net revenue churn subtracts expansion revenue from lost revenue before dividing by starting recurring revenue. New customer revenue is included in ending recurring revenue, but not in net revenue churn, because net revenue churn measures retention of the opening customer base.

How to use this calculator

  1. 1Enter the number of active customers at the start of the month.
  2. 2Add the number of those customers lost during the month.
  3. 3Enter monthly recurring revenue at the start of the month.
  4. 4Add recurring revenue lost through cancellations or downgrades.
  5. 5Enter expansion revenue from existing customers and revenue from new customers.
  6. 6Review customer churn, gross revenue churn, net revenue churn and ending recurring revenue.

Example Calculation

Customers at Start of Month

100

Customers Lost During Month

4

Starting Monthly Recurring Revenue

$10,000

Recurring Revenue Lost

$500

Expansion Revenue from Existing Customers

$300

New Customer Recurring Revenue

$1,200

Monthly Customer Churn Rate

4.00%

With 4 customers lost from an opening base of 100, customer churn is 4.00%. Gross revenue churn is 5.00%, net revenue churn is 2.00%, and ending monthly recurring revenue is $11,000.

Frequently asked questions

What is monthly customer churn rate?

Monthly customer churn rate is the percentage of customers active at the start of a month who cancel or leave during that month.

How do you calculate monthly customer churn?

Divide the number of customers lost during the month by the number of customers at the start of the month, then multiply by 100.

What is gross revenue churn?

Gross revenue churn is the percentage of starting recurring revenue lost through cancellations and downgrades, before counting any upgrades or expansions.

What is net revenue churn?

Net revenue churn measures lost recurring revenue after offsetting it with expansion revenue from existing customers. New customer revenue is not included.

Can net revenue churn be negative?

Yes. Negative net revenue churn means expansion revenue from existing customers was greater than revenue lost from those customers during the month.

Should new customer revenue be included in churn?

No. New customer revenue affects total ending recurring revenue, but churn and net revenue churn are normally calculated from the opening customer base.

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Assumptions and warnings

Assumptions

  • Customer churn is measured against customers active at the beginning of the month.
  • Recurring revenue figures represent comparable monthly recurring revenue amounts.
  • Gross revenue churn excludes expansion revenue from existing customers.
  • Net revenue churn includes expansion revenue but excludes revenue from newly acquired customers.
  • Results are management estimates and depend on accurate customer and revenue records.

Warnings

  • This calculator provides a business performance estimate only and should be used alongside your accounting records and reporting policies.