How this number is made
Logo churn is the customers you lost divided by the customers you started with. It ignores new customers, on purpose, so growth does not hide the leak. Revenue lost is the lost customers times what each one paid in a month. A customer who downgraded but stayed is not in this count.
- Use the same month or the same year for all three numbers.
- Revenue per customer is the average of the ones who left, if you know they were different from the ones who stayed.
Formula
Churn = lost ÷ starting customers. Monthly revenue lost = lost × revenue per customer.
Worked example
With the figures already in the form, customers lost is 4.5%.
Questions
Should new customers offset this?
Not on this page. Net adds are a different question. Churn is the leak by itself.
What about annual contracts?
Count a customer as lost in the period they stop paying. Do not divide by 12 unless you mean a monthly logo rate.