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.
Voluntary vs. Involuntary Logo Churn
Not all logo churn is a product problem. Voluntary churn happens when a customer actively decides to cancel — usually a sign of weak value, poor onboarding, or a better alternative. Involuntary churn happens when an account lapses because a payment fails and never recovers. For SMB SaaS, involuntary churn can account for 20-40% of total logo churn, yet it is the easiest to fix with dunning and card-update flows. Separating the two tells you whether to invest in product and success or simply in payment recovery.
Why Logo Churn Matters When Raising Capital
Logo churn is one of the first metrics a lender or revenue-based financing provider examines. A stable or shrinking logo churn rate signals a durable, predictable revenue base — the exact quality that lets founders raise larger amounts of non-dilutive capital on better terms. High logo churn, even at healthy net revenue retention, raises questions about repayment risk and can cap how much financing you qualify for. Tightening logo churn before a raise directly expands your funding options.
