Revenue Churn: What Is It and How Is It Calculated?

Net revenue churn is an essential metric for gauging the financial stability and customer retention of a SaaS company. It reflects the true impact of customer behavior on revenue by considering both lost MRR and gained MRR from existing customers. The net revenue churn formula is (MRR lost - MRR gained) / Starting MRR x 100, which determines the percentage of revenue change. To identify the best net revenue churn rate for your business, benchmark against past performance and industry peers. Both gross and net revenue churn rates should be calculated for a comprehensive view of financial health. Combat revenue churn by analyzing pricing strategies, engaging with churned customers, incentivizing upgrades, and enhancing user onboarding. Togai's pricing implementation platform plays a vital role in reducing churn and optimizing revenue streams.