Logo Churn Calculator Formula
Understand the math behind the logo churn calculator. Each variable explained with a worked example.
Formulas Used
Logo Churn Rate
logo_churn = customers_start > 0 ? (customers_churned / customers_start) * 100 : 0Logo Retention Rate
logo_retention = customers_start > 0 ? ((customers_start - customers_churned) / customers_start) * 100 : 0Annualized Logo Churn
annualized_logo_churn = customers_start > 0 ? (1 - pow(1 - customers_churned / customers_start, 12)) * 100 : 0Variables
| Variable | Description | Default |
|---|---|---|
customers_start | Customers at Start | 500 |
customers_churned | Customers Churned | 15 |
How It Works
How to Calculate Logo Churn
Formula
Logo Churn = (Customers Churned / Customers at Start) x 100
Logo churn counts the number of customer accounts lost, treating every customer equally regardless of how much they pay. It complements revenue churn, which is weighted by dollar value. A company might have low revenue churn but high logo churn if small customers leave while large ones stay. Tracking both provides a complete retention picture.
Worked Example
A company starts the month with 500 customers and 15 cancel.
- 01Logo Churn = (15 / 500) x 100 = 3%
- 02Logo Retention = (485 / 500) x 100 = 97%
- 03Annualized = (1 - (1 - 0.03)^12) x 100 = 30.6%
Frequently Asked Questions
How does logo churn differ from revenue churn?
Logo churn counts customers regardless of size. Revenue churn weights by dollars. A company losing many small customers might show high logo churn but low revenue churn, while losing one enterprise account could cause low logo churn but high revenue churn.
Why does annualized logo churn look so high?
Monthly churn compounds. If you lose 3% of customers every month, you do not lose 36% annually -- you lose about 31% because each month the base shrinks. The compounding formula accounts for this.
Ready to run the numbers?
Open Logo Churn Calculator