Revenue [[Churn Rate]] is a metric used to measure the total amount of [[Revenue]] that a company has lost in a given period of time due to customers canceling their subscriptions or otherwise ending their use of the product. This [[Product Metric]] is typically expressed as a percentage of total revenue earned during the period. ## Revenue Churn Rate Formula The formula for calculating Revenue Churn Rate is as follows: > Revenue Churn Rate = (Revenue Lost Due to Cancellations/Total Revenue Earned) x 100. For example, if a company earned $1,000 in revenue during a given month, and lost $200 in revenue due to customer cancellations, the Revenue Churn Rate for that month would be 20% (200/1000 x 100). ### Another Revenue Churn Rate Formula There is another formula variant which takes into account different upgrades (for example, if the company offers different subscription levels for services). Let's say your regular customer has decided to switch from the basic tariff to the hypothetical VIP - this needs to be taken into account when calculating. In this case, the following formula is obtained: > Revenue Churn Rate = ((MRR 1 - MRR 2) - MRR3)) / MRR 1 × 100%. - MRR 1 - regular monthly income; - MRR 2 - income at the end of the current month; - MRR3 in this case is the income from upgrades. It is important to note that the calculation does not include the profit from new customers, only from regular ones. > [!NOTE] > Another interesting feature of the metric is that you can get a negative value. And this is exactly the case when it's very good. That means regular customer income exceeds losses.