Retention quality signal.

Customer churn counts how many customers leave; revenue churn measures the value of what leaves. The gap reveals customer mix. If revenue churn exceeds customer churn, high-value customers are disproportionately leaving - a serious warning. If customer churn exceeds revenue churn, low-value customers are filtering out while high-value ones stay - usually a healthy sign.

5% customer churn, 7% revenue churn = +2 point gap. Revenue churn higher means average leaving customer is higher-value than average remaining. This signals either upmarket customers disengaging (product-market fit issue with premium segment) or pricing changes driving away highest-paying customers.

Best-in-class SaaS operates with revenue churn below customer churn because high-value customers have more at stake (deeper integration, more seats, higher workflow dependence). A business where 2k/month customers leave at same rate as 200/month customers has serious product issues at the top end.

Run it with sensible defaults

Using customer churn of 5%, revenue churn of 7%, avg mrr lost per churn of 0, avg mrr retained of 0, the calculation works out to 2.00 pts. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Customer Churn %, Revenue Churn %, Avg MRR Lost per Churn, and Avg MRR Retained — do not pull with equal force. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

How the math works

Gap = revenue churn % - customer churn %. Positive gap (revenue > customer): losing high-value customers. Negative: filtering out low-value. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Using this as a check-in

Re-run this every three months. A single reading tells you where you stand; four readings tell you whether things are improving. The trend matters more than any individual snapshot.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.