Logo Churn

The percentage of customer accounts (logos) lost during a period, regardless of their revenue contribution. Logo churn differs from revenue churn because losing a small customer counts the same as a large one.

What Is Logo Churn?

Logo churn (also called customer churn or account churn) measures the percentage of customer accounts — or "logos" — lost during a given period. Unlike revenue churn, logo churn treats every lost customer equally regardless of how much they were paying.

Logo Churn Formula

Logo Churn Rate = (Customers Lost in Period / Customers at Start of Period) x 100

For example, if you start January with 200 customers and lose 6, your monthly logo churn is 3%. Annualized, that is roughly 36% — meaning you replace more than a third of your customer base each year. Use our churn rate calculator to compute both monthly and annualized rates.

Logo Churn vs. Revenue Churn

Logo churn counts accounts lost. Revenue churn counts dollars lost. They often diverge: losing 10 small accounts (high logo churn) may be less impactful than losing 1 enterprise account (high revenue churn). Tracking both gives a complete picture — logo churn reveals breadth of customer dissatisfaction while revenue churn reveals financial impact.

Related Terms

Churn Rate

Net Revenue Retention (NRR)

Gross Revenue Retention (GRR)

LTV (Customer Lifetime Value)

Frequently Asked Questions

For SMB SaaS, monthly logo churn of 3-5% is common. Mid-market companies typically see 1-2% monthly. Enterprise SaaS with annual contracts often has less than 1% monthly logo churn (5-10% annually). Lower is always better — each percentage point compounds over time.
SMB churn is often driven by involuntary churn (failed payments) and poor onboarding. Implement dunning flows with retry logic to recover failed charges. Invest in automated onboarding that drives product adoption within the first 7-14 days. Monitor usage patterns and trigger proactive outreach when engagement drops — the goal is to intervene before the customer decides to cancel.
Both matter, but they tell different stories. High logo churn with low revenue churn means you are losing small accounts — potentially acceptable if you are moving upmarket. High revenue churn with low logo churn means large accounts are downgrading or leaving — a more urgent problem. Track both alongside churn rate to get the full picture.

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