- Formula
- Customers lost / starting customers
- Unit
- %
- Models
- SaaS, Usage-based, Subscription
| Annual, ARPA <$25/mo | ~6.1% monthly logo churn | ChartMogul; Recurly |
| Annual, ARPA >$500/mo | ~2.2% monthly logo churn | ChartMogul; Recurly |
| B2B annual good threshold | <5% | ChartMogul; Recurly |
What it is
Logo churn rate (also called customer churn) is the percentage of customers lost in a period relative to the number of customers at the start of that period. It counts customer headcount lost, regardless of their contract value, making it a pure count-level retention signal.
How to calculate it
Divide the number of customers who cancelled or did not renew during the period by the number of customers at the start of the period. Expressed as a percentage; most SaaS businesses report this monthly or annually.
Why it matters
Logo churn directly limits growth: every churned customer must be replaced with a new one before net growth can occur. At scale, a 1-point improvement in annual logo churn has a compounding effect on ARR and LTV. Logo churn also tends to diverge from revenue churn up-market — large accounts generate expansion revenue that masks logo attrition, so tracking both is essential.
Benchmarks & pitfalls
ChartMogul data shows monthly logo churn varies strongly by ARPA: products with ARPA below $25/month see ~6.1% monthly churn, while those above $500/month see ~2.2%. A widely cited B2B good threshold is annual logo churn below 5%. Note that logo churn almost always exceeds revenue churn in up-market segments because larger accounts expand, partially offsetting contraction. No asOf year is attached to these specific bands — treat them as directional anchors rather than precisely dated norms.