Net Churn
Revenue lost minus expansion from existing customers.
Net churn subtracts expansion revenue (upgrades, seat additions, add-ons) from lost revenue. When expansion exceeds cancellations, net churn goes negative, which is the mark of a healthy SaaS at scale. Use net churn for investor-facing metrics and gross churn when diagnosing product or onboarding problems.
Formula
Net churn = (Churned MRR - Expansion MRR) / MRR at start of period
Go deeper: Read the full net churnguide →