Churn

Churn doesn’t need to be scary

For a more in-depth insight into the churn report, you can explore our blog post titled: Churn Doesn’t Need To Be Scary (opens new window), where we provide a comprehensive explanation of this report type.

Churn reports

Revenue Churn

An amount of revenue that you have lost due to service cancellations, downgrades and unpaid invoices (meaning non-renewed services). It measures the actual amount of predictable monthly revenue that stopped being generated by active subscriptions.

Revenue Churn is directly related to MRR - it shows which portion of MRR from the beginning of the period was lost by the end of that same period. By default, MRR is calculated from services with the statuses Active and Suspended, but in the application settings, you can customize how MRR is calculated.

You can disable the option "MRR Calculation Based On Active Services" to limit MRR to services within a Grace Period, then after the grace period expires, unpaid services with Active or Suspended status will no longer count as active subscriptions. As a result, their MRR value will be excluded.

Where to find this setting:
Settings → My Applications → [selected application] → MRR Calculation Settings

Example:
Date: September 1, 2025
Service due on August 18, 2025, currently Suspended.

If MRR Calculation Based on Active Services is enabled → the service is still included in MRR.
If this option is disabled, and the Grace Period is set to fewer than 15 days → the service is treated as Churn.

Revenue Churn Rate

A ratio of the total value of lost revenue within the last 30 days to the MRR value at the beginning of that period.
For example, if your MRR at the start of the period was $1000 and by the end you experienced $100 in Revenue Churn, then your Revenue Churn Rate is 10%.

Subscription Churn

A number of lost subscriptions of recurring products, addons and domains.

Subscription Churn Rate

A ratio of the total number of lost subscriptions in the last 30 days to the number of subscriptions at the beginning of that period.
For example, if you had 100 active subscriptions at the start of the period and you lost 20 of them during the last 30 days, your Subscription Churn Rate is 20%.

Customer Churn

A number of customers that changed their status to inactive - have no active services with you any longer.

Customer Churn Rate

A ratio of the total number of lost subscribers within the last 30 days to the number of active subscribers at the beginning of that period.
For example, if you had a total of 100 customers, and 10 of them churned during the last 30 days, the churn rate would be 10%.