Track your company's revenue retention by accounting for churn, contraction, and expansion. Net Dollar Churn measures how much your existing revenue grows or shrinks over a specific period.
Total Net Revenue Position:
$0
Net Dollar Churn Amount:
Net Dollar Churn Rate:
0%
Pro Tip: If your Churn Rate is negative, you have achieved Negative Churn. This means expansion revenue from existing customers more than offsets the revenue lost from cancellations and downgrades.
Net Dollar Churn measures the net change in recurring revenue from your existing customer base over a specific period. It accounts for revenue lost through cancellations and downgrades, balanced against revenue gained through expansions and upgrades.
Net Churn Rate = [(Churn + Contraction - Expansion) / Starting MRR] x 100
Consider a scenario where a business begins the month with a Starting MRR of $10,000. During that month, they experience $500 in Churn (lost customers) and $1,200 in Expansion revenue from existing customers.
Negative churn happens when the expansion revenue from your existing customers is greater than the revenue lost from churned or contracting customers. This means your business grows revenue internally without adding a single new customer.
For most SaaS companies, a Net Dollar Churn rate of 0% or lower (negative) is the ultimate goal. For enterprise-level SaaS, benchmarks often fall between -2% and 2% monthly, while higher churn is common in small-business (SMB) sectors.
Gross Churn only measures the revenue lost and completely ignores expansion. It provides a "worst-case scenario" view of customer dissatisfaction or leakage, whereas Net Churn provides a holistic view of the financial health of your existing user base.
© 2026 Hreflabs LLC. All rights reserved.
Made with ❤️ for everyone who loves accurate calculations
