Churn Rate Performance

Radix: Improve Churn Rate Performance

No matter how strong a subscription-based company’s MRR is, if there is a high Churn Rate % in revenue and customers, the MRR Growth Rate will not be consistent, leaving the company to rely more on new sales to keep growing.

As this metric is one of the most critical to monitor, we have redesigned the dashboard called “Churn Performance” and also re-adjusted the churn rate’s formula. We reviewed this metric with 3 different subscription-based companies in order to calculate all the possible outcomes based on daily, weekly, monthly, yearly and usage subscriptions.

Churn Rate Perfomance

Our churn rate formula is straightforward:

  • Churn Rate % (Revenue) = Churned Revenue / Total Subscription Revenue
    • This is the % of lost revenue in the date range selected.
  • Churn Rate % (Subscriptions) = Churned Subscriptions / Total Subscriptions
    • This is the % of lost subscriptions (#) in the date range selected.

In this dashboard called Subscription Revenue, there are 2 charts that track the total revenue generated by subscriptions and the total churned revenue. In this case, I have filtered this dashboard for the past 12 months. As you can see, the Total Subscriptions Revenue is USD 75,461.42, and the Churned Revenue is $19,099.34. Therefore the churn is calculated by dividing both amounts.

Churn Rate % = Churned Revenue / Total Subscriptions Revenue

Churn Rate % = 25.31%

Information to highlight:

  • This churn calculation is already normalized, so if a yearly subscription of $1,200 is churned, only $100 will be counted.
  • Subscription revenue only (one-time customers are excluded).

Radix - Subscriptions

Churn Perfomance – Metrics:

  • Churned Subscriptions:
    • Total subscriptions churned in the selected date range.
  • Churned Revenue:
    • Total churned revenue in the selected date range.

Churned Revenue vs Churned Subscriptions

  • Churn Rate % (Revenue):
    • Total Churned Revenue / Total Subscriptions Revenue
  • Churn Rate % (Subscriptions):
    • Total Churn Subscriptions / Total Subscription

Churn Rate Performance

  • Churned Heatmap:
    • Track how much revenue is lost every 30 min or every 24 hours.

Churned Heatmap

  • New Subscriptions vs Churned Subscriptions:
    • The Subscription Performance for April is -11 subscriptions, meaning that during that month only 2 new subscriptions were acquired, but 13 were lost.

Churn Ratio

Get started for free by connecting your Stripe and PayPal accounts to track, analyze, and reduce your Churn Rate %.



Manfred Tijerino
Manfred Tijerino
Founder & CEO of Radix Haven, the software that helps SaaS and eCommerce to grow revenue by providing real-time analysis and tools to improve over +100 business KPIs. Before Radix Haven, Manfred was the Chief Data Scientist for a Virginia-based Online Marketing Agency, and more than ten years in the tech industry.