What this calculator measures
Tracks gross revenue churn and net revenue retention for subscription businesses.
Common use cases
Use this model when the inputs describe the same decision, period and customer or product scope.
- Calculate gross and net recurring-revenue churn for a reporting period.
- Use the result with the recorded inputs: Starting recurring revenue, Churned revenue, Contraction revenue, Expansion revenue.
- Compare multiple scenarios before making a marketing decision.
Formula
Gross churn = (Churn + Contraction) ÷ Starting revenue
Net retention adds expansion back while gross churn does not.
Worked example
Starting with $10,000 MRR, losing $500, and expanding by $800 yields 98% net retention.
How to interpret the result
Net retention above 100% indicates strong negative churn/expansion.
Assumptions and limitations
- All losses and expansions are tracked accurately within the period.