Logo Churn vs Revenue Churn Which one matters more?

Two churn metrics. Same period, same customer base, often very different numbers. Compute both, see the divergence, and read what it says about which customers are leaving.

Inputs

Starting customers

Churned customers

Starting MRR ($)

Churned MRR ($)

Logo Churn

5.00%

Customers Lost / Starting Customers

Revenue Churn

1.00%

MRR Lost / Starting MRR

Divergence read

Small customers leaving

Logo churn far exceeds revenue churn. The accounts leaving are below your overall ARPU. Investigate SMB activation and onboarding; revenue trajectory likely intact.

ARPU of churned

$40

ARPU overall

$200

Churned accounts were 20% of average ARPU. (Below average. Small-customer tier leaking.)

The two formulas

Logo Churn (customer churn)

Customers Lost / Starting Customers

Headcount-weighted. Each lost customer counts the same regardless of ACV. Useful for assessing product-market fit and customer success effectiveness.

Revenue Churn (gross MRR churn)

MRR Lost / Starting MRR

Dollar-weighted. Each lost customer counts proportional to their MRR. Useful for assessing economic durability and forecasting accuracy.

Worked example

A B2B SaaS starts the month with 100 customers and $20,000 MRR. During the month, 5 customers cancel. Those 5 customers were each paying $40/month, so their combined MRR was $200.

Starting customers	100
Churned customers	5
Starting MRR	$20,000
Churned MRR	$200
Logo churn	5.0%
Revenue churn	1.0%

The divergence is 5 to 1. Logo churn flags a problem at the small-customer tier (probably SMB activation or pricing fit). Revenue churn says the financial trajectory is intact. The right response: invest in the SMB onboarding pipeline rather than panic about a 5% headline churn rate.

The dangerous inversion

When revenue churn exceeds logo churn, the pattern flips. Imagine the same 100 customers but 2 customers cancel. Those 2 were enterprise accounts paying $5,000/month each. Logo churn is 2%, revenue churn is 50%.

This pattern indicates concentration risk: a small number of large accounts driving most of the revenue. Losing one or two flagship logos can permanently impair the business. Healthy SaaS companies diversify revenue across tiers so a single enterprise loss does not crater the forecast. Investors specifically probe this when they ask "what is your customer concentration?"

Benchmarks by segment

ChartMogul Subscription Index 2026 data (monthly):

Segment	Logo Churn (median)	Revenue Churn (median)	Typical divergence
B2C SaaS	5.0%	4.0%	Slight (consumer accounts similar size)
SMB B2B (ACV < $10K)	3.5%	2.5%	Moderate (price tiers vary)
Mid-market ($10-50K ACV)	1.8%	1.2%	Wider (seat-based pricing diversity)
Enterprise ($50K+ ACV)	0.8%	0.5%	Wide (large ACV variance)

Source: ChartMogul SaaS Subscription Index, KeyBanc Capital Markets SaaS Survey 2025-2026. Ranges are medians for healthy operating businesses; outliers exist.

Related

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Frequently Asked Questions

What is the difference between logo churn and revenue churn?

Logo churn counts customers lost as a percentage of starting customers. Revenue churn counts MRR lost as a percentage of starting MRR. They diverge when customer size varies. A company with 100 customers losing 5 small ones has 5% logo churn but if those 5 only contributed 1% of MRR, the revenue churn is 1%. The metric you should optimise for depends on what is failing in the business.

Which churn metric do investors care about?

Revenue churn at growth stages, both at early stages. Series A and earlier investors look at both because logo churn signals product-market fit (are customers happy with the product) while revenue churn signals economic durability (are the dollars stable). Series B onward, revenue churn dominates investor diligence because at scale the financial trajectory is what compounds. Public SaaS companies report revenue churn or its inverse (gross retention) almost exclusively.

When does logo churn matter more than revenue churn?

Three scenarios: (1) Reference-dependent businesses (security tools, infrastructure tools) where customer logos directly drive new sales through case studies and social proof. (2) Network-effect businesses where every lost logo weakens the network for remaining customers. (3) Cohort-quality analysis where rapid logo churn signals onboarding or activation failure even when revenue churn looks acceptable due to one large retained account.

What is a healthy logo to revenue churn ratio?

When logo churn and revenue churn are close (within 1 percentage point), churn is roughly proportional to customer size. When logo churn is much higher than revenue churn, you are losing small customers and retaining large ones (often a healthy positioning signal). When revenue churn is much higher than logo churn, you are losing large customers and retaining small ones (a dangerous concentration-risk pattern). The ratio matters more than either number in isolation.

What is the ChartMogul Subscription Index benchmark?

ChartMogul publishes anonymised benchmark data drawn from thousands of SaaS subscription businesses. Their 2026 data shows median monthly gross MRR churn around 4% for B2C SaaS and 1.0% for B2B SaaS at $1M-$10M ARR; logo churn medians run higher in SMB and lower in enterprise. The Subscription Index is the most useful real-data benchmark for SaaS churn and is updated quarterly.

Updated May 2026