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MarginMeter

Churn

Churn definition for SaaS and AI founders: what it means, how to calculate it, and common pitfalls when reading it in dashboards.

Churn is the share of customers (logo churn) or recurring revenue (revenue churn) lost in a period.

Formula

Gross MRR churn % = Churned MRR ÷ Starting MRR × 100

In practice

Monthly and annual churn are not interchangeable: 3% monthly is roughly 31% annually, not 36%.

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