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Revenue Churn

The amount of recurring revenue lost in a month due to cancellations or downgrades.

Acme lost $2,000 MRR out of $50,000 starting MRR: Revenue Churn = ($2,000 / $50,000) * 100 = 4%. Acme uses this to measure revenue retention.

Divide the lost monthly recurring revenue by the total monthly recurring revenue at the start of the month.

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