[{"data":1,"prerenderedAt":248},["ShallowReactive",2],{"glossary-what-is-revenue-churn":3},{"templateId":4,"defaults":5,"componentData":19},"glossaries",{"meta":6,"content":11,"faqs":15,"reads":18},{"seoTitle":7,"seoDescription":8,"seoImage":9,"index":10},"What is Revenue Churn? | Chargebee Glossaries","Revenue churn is a measure of the recurring revenue lost by a subscription business through subscription cancellations and downgrades.","https:\u002F\u002Fwww.chargebee.com\u002Fstatic\u002Fresources\u002Fog\u002Frebrand\u002Fglossaries\u002Fglossaries-chargebee.png",true,{"title":12,"description":13,"content":14},"What is |Revenue Churn|?","Revenue churn is a measure of the recurring revenue lost by a SaaS business through subscription cancellations and downgrades.","\u003Ch3>Revenue Churn Formula\u003C\u002Fh3>\u003Cp>Revenue Churn is derived as the ratio of revenue lost through cancellations during a given period versus the revenue available at the beginning of that period. It’s usually expressed as a percentage.\u003C\u002Fp>\u003Cblockquote>\u003Cp>Revenue Churn = (Churned MRR)\u002F(MRR at the beginning of the period)\u003C\u002Fp>\u003C\u002Fblockquote>\u003Ch3>Customer Churn VS Revenue Churn\u003C\u002Fh3>\u003Cimg src=\"https:\u002F\u002Fcms.devcb.in\u002Fcms\u002Fglossaries\u002Fcustomer-churn-revenue-churn.png\" alt=\"Customer Churn VS Revenue Churn\" \u002F>\u003Ch3>How should a business interpret Revenue Churn?\u003C\u002Fh3>\u003Cp>Churn is mostly inevitable and is caused by a variety of reasons such as cancelled subscriptions due to lack of perceived value and credit card expiry, categorized as \u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fblog\u002Fretain-customers-churn-saas\u002F\">voluntary and involuntary churn\u003C\u002Fa>.\u003C\u002Fp>\u003Cp>But, you can gain key insights from revenue churn, if you tailor the formula to find \u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fresources\u002Fglossaries\u002Fwhat-is-gross-mrr-churn-rate\u002F\">Gross MRR Churn\u003C\u002Fa> or \u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fresources\u002Fglossaries\u002Fwhat-is-net-mrr-churn-rate\u002F\">Net MRR Churn\u003C\u002Fa>.\u003C\u002Fp>\u003Ch3>Gross MRR Churn\u003C\u002Fh3>\u003Cp>Gross Monthly Recurring Revenue Churn attempts to show how much revenue is being lost, irrespective of how much you may be expanding within the existing customer base via expansion and upgrades. In this way, Gross MRR churn helps focus on how much revenue leakage is happening.\u003C\u002Fp>\u003Cblockquote>\u003Cp>\u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fresources\u002Fglossaries\u002Fwhat-is-gross-mrr-churn-rate\u002F\">Gross MRR Churn Rate\u003C\u002Fa> = [(\u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fresources\u002Fglossaries\u002Fwhat-is-downgrade-mrr\u002F\">Downgrade MRR\u003C\u002Fa> + Cancellation MRR) \u002F (Total MRR at the beginning of the period)] * 100\u003C\u002Fp>\u003C\u002Fblockquote>\u003Ch3>Net MRR Churn\u003C\u002Fh3>\u003Cp>Net Monthly Recurring Revenue Churn, on the other hand, attempts to paint a picture of the final reality after taking into account what’s lost (via cancellations, downgrades) and what’s gained (via expansion, reactivation and upgrades).\u003C\u002Fp>\u003Cblockquote>\u003Cp>Net MRR Churn Rate = [(MRR beginning of the month - MRR end of the month) - (Expansion MRR)] \u002F [(MRR (\u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fresources\u002Fglossaries\u002Fwhat-is-mrr\u002F\">Monthly recurring revenue\u003C\u002Fa>) beginning of the month)] * 100\u003C\u002Fp>\u003C\u002Fblockquote>\u003Cp>Net MRR Churn can be a negative churn. That’s to say the business is making more money out of a cohort of customers than it’s losing from the same cohort, in that period of time.\u003C\u002Fp>\u003Ch3>MRR Retention Cohort\u003C\u002Fh3>\u003Cp>Also, to stay on top of churn, \u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fdocs\u002Fchargebee-analytics.html\">you need to analyze your SaaS\u003C\u002Fa> metrics. MRR Retention Cohort would be one of the charts you need to analyze. This chart will show you churn behavior based on both: when you acquired the customer and what happened in a particular month.\u003C\u002Fp>\u003Cimg src=\"https:\u002F\u002Fcms.devcb.in\u002Fcms\u002Fglossaries\u002Fmrr-retention-cohort.png\" alt=\"MRR Retention Cohort\" \u002F>\u003Cp>Moving from left to right, you get an indication of change in \u003Ca href=\"https:\u002F\u002Fwww.chargebee.com\u002Fresources\u002Fglossaries\u002Fwhat-is-mrr\u002F\">MRR\u003C\u002Fa>. And moving down rows, shows you how much new revenue you could acquire month on month. In the cohort above, you can see an adverse impact on revenue growth across customers in April.\u003C\u002Fp>\u003Cp>\u003Cdiv data-type=\"guide\" data-guide-id=\"revenue-operations-guide\">\u003C\u002Fdiv>\u003C\u002Fp>\u003Cp>\u003C\u002Fp>",{"title":16,"content":17},"",[],{"title":16,"content":16},{"glossariesNav":20,"guides":240},[21,24,27,30,33,36,39,42,45,48,51,54,57,60,63,66,69,72,75,78,81,84,87,90,93,96,99,102,105,108,111,114,117,120,123,126,129,132,135,138,141,144,147,150,153,156,159,162,165,168,171,174,177,180,183,186,189,192,195,198,201,204,207,210,213,216,219,222,225,228,231,234,237],{"slug":22,"title":23},"what-is-account-hierarchy","Account Hierarchy",{"slug":25,"title":26},"account-receivables-aging-report","Accounts Receivable aging report",{"slug":28,"title":29},"accrued-revenue","Accrued Revenue",{"slug":31,"title":32},"acv-vs-arr","ACV and ARR",{"slug":34,"title":35},"annual-recurring-revenue","Annual Recurring Revenue",{"slug":37,"title":38},"what-is-arpu","Average Revenue Per User",{"slug":40,"title":41},"what-are-bookings","Bookings in the world of SaaS",{"slug":43,"title":44},"cac-payback-period","CAC Payback Period",{"slug":46,"title":47},"what-is-calendar-billing","Calendar Billing",{"slug":49,"title":50},"what-is-cart-abandonment","Cart Abandonment",{"slug":52,"title":53},"what-is-checkout","Checkout",{"slug":55,"title":56},"what-is-churn-rate","Churn Rate",{"slug":58,"title":59},"competitive-pricing","Competitive Pricing Strategy",{"slug":61,"title":62},"what-is-consolidated-invoicing","Consolidated Invoicing",{"slug":64,"title":65},"what-is-contraction-mrr","Contraction MRR",{"slug":67,"title":68},"what-is-credit-card-data-portability","Credit Card Data Portability",{"slug":70,"title":71},"what-are-credit-notes","Credit Notes",{"slug":73,"title":74},"what-is-current-ratio","Current ratio",{"slug":76,"title":77},"what-is-customer-acquisition-cost","Customer Acquisition Costs",{"slug":79,"title":80},"customer-attrition","Customer Attrition",{"slug":82,"title":83},"what-is-customer-churn","Customer Churn",{"slug":85,"title":86},"what-is-customer-retention","Customer Retention",{"slug":88,"title":89},"deferred-revenue","Deferred Revenue",{"slug":91,"title":92},"what-are-discounts-and-coupons","Discounts and Coupons",{"slug":94,"title":95},"what-is-downgrade-mrr","Downgrade MRR",{"slug":97,"title":98},"what-is-dunning","Dunning",{"slug":100,"title":101},"entitlement-management","Entitlement Management",{"slug":103,"title":104},"what-is-expansion-mrr","Expansion MRR",{"slug":106,"title":107},"what-is-free-trial","Free Trial",{"slug":109,"title":110},"what-is-freemium","Freemium",{"slug":112,"title":113},"what-is-friendly-fraud","Friendly Fraud",{"slug":115,"title":116},"what-is-GDPR-compliance","GDPR",{"slug":118,"title":119},"what-is-grandfathering","Grandfathering",{"slug":121,"title":122},"what-is-gross-mrr-churn-rate","Gross MRR Churn Rate",{"slug":124,"title":125},"what-is-involuntary-churn","Involuntary Churn",{"slug":127,"title":128},"ltv-cac-ratio","LTV-CAC Ratio",{"slug":130,"title":131},"what-is-mrr","Monthly Recurring Revenue",{"slug":133,"title":134},"what-is-negative-churn","Negative Churn",{"slug":136,"title":137},"what-is-net-dollar-retention","Net Dollar Retention",{"slug":139,"title":140},"what-is-net-mrr-churn-rate","Net MRR Churn Rate",{"slug":142,"title":143},"what-is-net-mrr-growth","Net MRR Growth Rate",{"slug":145,"title":146},"what-is-new-mrr","New MRR",{"slug":148,"title":149},"what-are-operating-expenses","operating expenses",{"slug":151,"title":152},"what-is-order-to-cash","Order to Cash",{"slug":154,"title":155},"pay-as-you-go-pricing","Pay As You Go Pricing Model",{"slug":157,"title":158},"what-are-payment-methods","Payment Methods",{"slug":160,"title":161},"what-is-pci-dss-compliance","PCI DSS Compliance",{"slug":163,"title":164},"what-is-proration","Proration",{"slug":166,"title":167},"what-is-psd2-explained","PSD2",{"slug":169,"title":170},"what-is-a-purchase-order","Purchase Order",{"slug":172,"title":173},"what-is-reactivation-mrr","Reactivation MRR",{"slug":175,"title":176},"what-are-recurring-payments","Recurring Payments",{"slug":178,"title":179},"what-are-recurring-revenue-models","Recurring Revenue Model",{"slug":181,"title":182},"what-is-renewal-rate","Renewal Rate",{"slug":184,"title":185},"revenue-backlog","Revenue Backlog",{"slug":187,"title":188},"what-is-revenue-churn","Revenue Churn",{"slug":190,"title":191},"revenue-recognition-principle","Revenue Recognition Principle",{"slug":193,"title":194},"revenue-run-rate","Revenue Run Rate",{"slug":196,"title":197},"what-is-saas-churn-rate","SaaS Churn Rate",{"slug":199,"title":200},"saas-gross-margin","SaaS Gross Margin",{"slug":202,"title":203},"income-statement-insights-chargebee","SaaS Income Statement",{"slug":205,"title":206},"what-is-saas-quick-ratio","SaaS Quick Ratio",{"slug":208,"title":209},"sales-forecasting","SaaS Sales Forecasting",{"slug":211,"title":212},"what-is-sales-tax","Sales Tax",{"slug":214,"title":215},"what-is-subscription-churn","Subscription Churn",{"slug":217,"title":218},"what-is-subscription-management","Subscription Management",{"slug":220,"title":221},"tiered-pricing-model-strategy","Tiered Pricing Model",{"slug":223,"title":224},"total-contract-value","Total Contract Value",{"slug":226,"title":227},"what-is-upgrade-mrr","Upgrade MRR",{"slug":229,"title":230},"what-is-usage-based-billing","Usage-based Billing",{"slug":232,"title":233},"what-is-vat","Value Added Tax",{"slug":235,"title":236},"value-based-pricing","Value Based Pricing",{"slug":238,"title":239},"volume-discounting","Volume Discounting",{"revenue-operations-guide":241},{"id":242,"title":243,"description":244,"image":245,"ctaText":246,"ctaUrl":247},"revenue-operations-guide","The Ultimate Guide to Revenue Operations","See how you can drive efficiency into your RevOps with our extensive guide","https:\u002F\u002Fwww.chargebee.com\u002Fstatic\u002Fresources\u002Fglosserybook\u002Frev-ops-guide.png","Download Guide","\u002Fresources\u002Fguides\u002Frevenue-operations-techstack-download\u002F?ref=glossaries",1792502798572]