Churn: how much you lose each month
Churn is the share of customers, or of MRR, that left in a period. Customer churn counts people; revenue churn counts money.
The formula
Revenue churn = MRR lost in 30 days ÷ MRR 30 days ago
An example
You had €2,000 MRR a month ago and subscriptions worth €140 a month were cancelled since: revenue churn is 7%. If 9 of 150 customers left, customer churn is 6%.
Work it out with your numbers →How Sumly counts it
- Both kinds are shown, over the last 30 days, on the overview and on Metrics.
- A subscription counts as lost when its cancellation is scheduled, the same moment it leaves MRR.
- A trial that ends without paying is not churn; it shows in trial conversion instead.
Mistakes that make it lie
- Dividing by the customers you have at the end of the month, which hides losses when you grow fast.
- Mixing new customers into the base of the same month.
Questions
What is a good churn rate?
It depends on the price and the buyer. Cheap consumer apps often lose several percent a month; business software that teams rely on often loses far less. Your own trend matters more than any benchmark.
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