Formula
Logo churn = customers lost ÷ customers at opening Gross MRR churn = (contraction + churn) ÷ opening MRR Net MRR churn = (contraction + churn − expansion) ÷ opening MRR Quick ratio = (new + reactivation + expansion) ÷ (contraction + churn)
Worked example
Figures from the sample company in every trial. Northwind Analytics (sample), September 2026. Opening MRR $147,708.
Gross MRR churn = 870 ÷ 147,708 = 0.59%
Net MRR churn = (870 − 13,201) ÷ 147,708 = −8.35%
Quick ratio = 13,661 ÷ 870 = 15.7
Monthly and annual churn are not twelve times apart
Churn compounds. A 2% monthly logo churn rate keeps 78.5% of customers over a year, which is 21.5% annual churn, not 24%.
Logo churn or revenue churn
Logo churn says something about customer experience; revenue churn says something about money. Many small customers can leave with little revenue effect, and one large cancellation can move revenue churn while logo churn barely changes. Report both, next to NRR and GRR.
The quick ratio
The quick ratio compares MRR gained with MRR lost. A ratio of 4 means four dollars added for every dollar lost. Read it as a trend: a month with almost no churn makes it very large, as in the example.
How Revnewed calculates it
A customer churns when their MRR goes to zero. Contraction is a decrease for a customer who still has MRR. Both are measured per customer at last month’s rates, so currency moves never show up as churn.
Logo churn, gross and net MRR churn and the quick ratio are calculated every month from the same bridge the board pack uses.
Common mistakes
- Multiplying monthly churn by twelve
- It overstates annual churn, more so as the monthly rate rises.
- Downgrades counted as lost customers
- A customer who downgrades is contraction, not logo churn.
- Reactivations counted as new
- Earlier churn never reverses and acquisition looks better than it is.