Core Retention Metrics Outcome

Revenue Churn Rate

Revenue Churn Rate: The percentage of MRR lost to churn and contraction in a period. Also called MRR Churn Rate.

Formula

Revenue Churn Rate = (Churned MRR + Contraction MRR) / Beginning MRR × 100

Computable definition

The canonical formula in the GASP formula grammar. The MCP server compiles it to SQL over the datasets listed below.

(metric.churned_mrr + metric.contraction_mrr) / metric.mrr at period_start

Unit: percent (the formula yields an unscaled ratio)

Breakdowns

by_segment: one row per segment value

Notes: by_segment returns one row per customer segment, so churn concentrated in one segment is visible.

Data requirements

Grain: Per event, aggregate monthly · Frequency: Daily sync · Aggregation: aggregate (month) · Staged: no · Main source: Billing.

Field	Dataset	Type
`event_date`	revenue_event	date
`event_type`	revenue_event	string
`mrr`	subscription	decimal
`mrr_change`	revenue_event	decimal
`snapshot_date`	subscription	date
`subscription_status`	subscription	string

Example SQL (Postgres)

SELECT (CAST((((-(SELECT COALESCE(SUM(mrr_change), 0) FROM revenue_event WHERE event_date >= :period_start AND event_date <= :period_end AND event_type = 'churn'))) + ((-(SELECT COALESCE(SUM(mrr_change), 0) FROM revenue_event WHERE event_date >= :period_start AND event_date <= :period_end AND event_type = 'contraction')))) AS DOUBLE PRECISION) / NULLIF(((SELECT COALESCE(SUM(mrr), 0) FROM subscription WHERE snapshot_date = :period_start AND subscription_status = 'active')), 0)) AS revenue_churn_rate

Access: recommended sensitivity tier confidential, access scope unscoped. Guidance your policy engine enforces.

From an agent: with the GASP MCP server, call lookup_metric({ "name": "Revenue Churn Rate" }) or generate_query({ "metric": "Revenue Churn Rate", "adapter": "<your adapter JSON>" }).

Benchmarks

<2%: Good
2-5%: Average
>5%: High (average annual churn ~4.9% for B2B SaaS)

Revenue Churn Rate is reported per customer segment.

What It Tells You

The revenue impact of churn. If revenue churn is lower than logo churn, you're losing smaller customers (often acceptable). If higher, you're losing larger customers (concerning).

Dual-Lens: Operating / Market Forms

Both governed forms are computed from the same Commercial Event Ledger, with Attribution Taxonomy Layer tags deciding which events each form counts.

Operating Form: Revenue Churn Rate (Churn-O)

MRR-weighted churn captures the economic impact of attrition. The formula is defined above: `(Churned MRR + Contraction MRR) / Beginning MRR × 100`.

CEL Source:: `Revenue_Event` where `event_type` ∈ (`churn`, `contraction`)

(Churned MRR + Contraction MRR) / Beginning MRR × 100

What it tells you: The economic damage of attrition, which is why it is the operating form. Losing a $50K customer hits harder than losing a $500 customer.

Market Form: Logo Churn Rate (Churn-M)

Customer-count churn treats every logo equally. The formula is defined in the Logo Churn Rate section above: `Customers lost / Customers at start × 100`.

CEL Source:: `Revenue_Event` where `event_type` = `churn` (full churn only. Contraction is not logo churn)

Customers lost / Customers at start × 100

What it tells you: How many customers leave, counted the simple way investors benchmark, which is why it is the market form.

Bridge

Revenue Churn and Logo Churn are not additive. One measures dollars, the other measures logos. The diagnostic compares the two signals: - **Churn-O high, Churn-M low →** Losing few but high-value customers (concentration risk) - **Churn-M high, Churn-O low →** Losing many small customers (long-tail churn) - Read the pattern by customer segment to see where retention work should go. ---

Connected in the GASP relationship graph.

Upstream: what drives this

Churned MRR component of Revenue Churn Rate (Core)
Contraction MRR component of Revenue Churn Rate (Core)
MRR component of Revenue Churn Rate (Core)

Downstream: what this drives

Revenue Churn Rate component of LTV (Core)
Revenue Churn Rate measures Customer (Entity)
Revenue Churn Rate measures Subscription (Entity)

View canonical definition →

Sources

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