Metrics
Churn (Logo vs. Revenue)
Quick definition
The rate at which customers (logo churn) or recurring revenue (revenue churn) leave over a period.
Churn measures customers or revenue lost. Logo churn is customers lost as a share of customers at the start of the period; revenue or dollar churn is recurring revenue lost, which weights larger accounts more heavily, so a healthy logo rate can hide a dangerous revenue problem. Gross churn counts only losses and cannot go negative; net churn nets expansion against those losses and can go negative when the existing base grows (net revenue retention is one minus net revenue churn). Churn sits in the denominator of LTV and drags NRR, so a small improvement compounds. Always state whether a churn figure is monthly or annual, since monthly rates annualize into much larger numbers.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell: what you keep before expansion.
See this in action
Insights and tools where Churn (Logo vs. Revenue) shows up.
Frequently asked questions
- What is Churn (Logo vs. Revenue)?
- Churn measures customers or revenue lost. Logo churn is customers lost as a share of customers at the start of the period; revenue or dollar churn is recurring revenue lost, which weights larger accounts more heavily, so a healthy logo rate can hide a dangerous revenue problem. Gross churn counts only losses and cannot go negative; net churn nets expansion against those losses and can go negative when the existing base grows (net revenue retention is one minus net revenue churn). Churn sits in the denominator of LTV and drags NRR, so a small improvement compounds. Always state whether a churn figure is monthly or annual, since monthly rates annualize into much larger numbers.
- Why is Churn (Logo vs. Revenue) important for startups?
- Churn (Logo vs. Revenue) is a metrics concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does Churn (Logo vs. Revenue) belong to?
- Churn (Logo vs. Revenue) is a Metrics term in the StartupCFO finance glossary — alongside other metrics concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about Churn (Logo vs. Revenue)?
- Beyond this definition, see the related metrics terms below, or explore StartupCFO's insights and tools that put Churn (Logo vs. Revenue) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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