The formulas
- Customer churn = customers lost / customers at start
- Annualized churn = 1 - (1 - churn)^(12 / months)
- GRR = (start revenue - cancellations - downgrades) / start revenue
- NRR = (start revenue - cancellations - downgrades + upgrades) / start revenue
How it works
Customer churn counts logos. Revenue retention counts dollars, which matters more when customers differ in size. Gross revenue retention caps at 100 percent and shows how much of the base you keep. Net revenue retention adds upgrades from the same customers and goes above 100 percent when expansion outruns losses.
Count only customers who were on the books at the start. New customers won during the period stay out of every figure here. Annualize churn by compounding, not by multiplying by 12: losing 3 percent a month is 30.6 percent a year, not 36 percent.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Why is annualized churn below 12 times monthly?
Each month churn applies to a smaller remaining base.
Should a reactivated customer count as retained?
Count it as a new win in the period it returns. Keep the original loss.
Is NRR above 100% always good?
It means the existing base grows on its own. Check GRR too: high expansion can hide high cancellations.
Formulas on this page are the standard definitions.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.