MRR Lab

Logo Churn Calculator

Calculate and analyze your customer churn rate (logo churn) to understand customer retention and identify areas for improvement.

Monthly Churn Rate
5%
Quarterly Churn Rate
14.26%
Annual Churn Rate
45.96%

This logo churn calculator helps you calculate your monthly, annual and quarterly customer churn rates.

Logo churn measures the percentage of customers lost over a period of time. Unlike revenue churn, it does not account for how much revenue is lost.

Logo churn and revenue churn are similar in SaaS companies where all subscribers pay about the same amount.

How It Works

  1. Enter your total number of active customers at the start of the period
  2. Enter the number of thse customers that churned during that period
  3. Select the time period (monthly, quarterly, or annual)
  4. The calculator will show:
    • Your logo churn rate
    • Customer retention rate
    • Annualized churn rate (for monthly/quarterly periods)
    • Visual breakdown of retained vs churned customers

Understanding the Results

The calculator provides several key metrics:

Logo Churn Rate

Calculated as: (Churned Customers / Starting Customers) × 100

This represents the percentage of customers lost during the selected period.

Customer Retention Rate

Calculated as: 100 - Churn Rate

This shows the percentage of customers retained during the period.

Annualized Churn Rate

For monthly periods: (1 - (1 - monthly_churn)^12) × 100

For quarterly periods: (1 - (1 - quarterly_churn)^4) × 100

For annual periods: Same as the regular churn rate

This helps compare churn rates across different time periods by converting them to an annual basis.

Common Use Cases

  1. Customer Health Monitoring: Track logo churn trends over time to identify retention issues early
  2. Product-Market Fit Analysis: High logo churn may indicate product-market fit problems
  3. Customer Success Effectiveness: Measure the impact of customer success initiatives on retention
  4. Segmentation Analysis: Compare churn rates across different customer segments

Limitations

  • Does not account for the revenue impact of churned customers
  • Does not consider the timing of churn within the period
  • Does not factor in new customer acquisition
  • Simple period-over-period calculation may miss seasonal patterns

Tips for Improvement

  1. Analyze Churn Patterns

    • Look for common characteristics among churned customers
    • Identify if churn is concentrated in specific segments

  2. Improve Onboarding

    • Focus on key activation metrics
    • Ensure customers achieve early value

  3. Enhance Customer Success

    • Implement proactive outreach
    • Create customer health scores
    • Monitor product usage patterns

  4. Gather Feedback

    • Conduct exit interviews
    • Survey at-risk customers
    • Track feature usage and satisfaction

Related Metrics

Core Metrics

Customer Success Metrics

Growth Metrics