You should calculate revenue churn on a monthly basis. Start by subtracting your monthly recurring revenue MRR at the end of the month from your MRR at the beginning of the month.
Then, subtract any revenue you earned from upselling or cross-selling to existing customers. Finally, divide this number by your MRR at the beginning of the month.
In fact, you may end up with a negative percentage, meaning indonesia mobile database that your revenue from existing customers outweighs any losses. But remember that revenue from new customers should not be included in this calculation.
Revenue Churn Rate Formula
Monthly revenue churn rate = [MRR at the beginning of the month - MRR at the end of the month - MRR of upgrades within the month] MRR at the beginning of the month
Revenue Churn Rate Example
To demonstrate revenue churn, let’s use a similar example to the one we used above.
Customer Retention Metrics: Revenue Churn Rate Example"
For this example, let's say our company starts in September with $50,000 in MRR. During that month, we have $5,000 in churn and $2,500 in revenue from upgrades. For the month, our revenue churn is 5%. [$50,000 - $45,000 - $2,500] $50,000 = 5%.