Calculate gross and net revenue churn from the same existing-customer MRR cohort, then see how contraction and expansion change retained recurring revenue.
Use the same existing-customer cohort and reporting period for every input. Exclude new-customer MRR. This model credits expansion MRR but does not include reactivation MRR as a separate input.
Gross revenue churn isolates recurring revenue lost through cancellations and contraction before any expansion is counted. Net revenue churn subtracts expansion from those losses, so it can be negative when existing-customer expansion is larger than churn plus contraction. Read the two rates together: strong expansion can produce excellent net churn while gross losses still deserve attention.
This calculator uses a starting-cohort MRR convention and excludes new-customer MRR. It also does not provide a separate reactivation input, so companies that credit reactivated customers in net churn or NRR should align definitions before benchmarking. Compare the result with GRR, NRR, customer churn and expansion metrics rather than treating one churn percentage as a complete retention score.
Use revenue churn to measure recurring-revenue durability inside the customers you already had at the start of the period. The denominator should be starting MRR from that cohort, not total ending MRR and not revenue from customers acquired later in the period.
Gross revenue churn equals churned MRR plus contraction MRR divided by starting MRR. Net revenue churn uses the same losses but subtracts expansion MRR from existing customers. In this SolveIndex model, reactivation MRR is outside the input set; document that scope if your billing platform uses a broader net-churn convention.
Reconcile churned MRR, contraction and expansion to the same billing definitions every period. A plan downgrade, seat reduction or usage decline belongs in contraction rather than full churn when the customer remains active. Upsells, cross-sells, added seats and increased usage can contribute to expansion when they come from customers in the starting cohort.
Use gross retained MRR and net retained MRR to bridge the percentage rates back to dollars. Gross retained MRR removes losses only. Net retained MRR then adds expansion. This makes it easier to investigate whether a percentage change was driven by a large account, many small accounts, pricing changes or usage shifts.
This calculator is an educational operating tool rather than an accounting standard. SaaS vendors and analytics platforms can differ on reactivation, pauses, delinquent subscriptions and segment migrations, so material board or investor reporting should document the exact policy and keep it stable over time.
Read the matching guide for definitions, formula context, worked examples, reporting boundaries and common mistakes.
Disclaimer: This calculator provides estimates for planning and educational purposes only. Results depend on the assumptions and definitions entered and should not be treated as accounting, financial, legal, tax, valuation or investment advice. Validate material decisions with qualified professionals and your source systems.