Keywords · Retention · Finance

Dollar Churn

The amount of recurring revenue lost to cancellations and downgrades in a period, expressed in currency rather than customer count.

Why it matters

Dollar churn is what actually threatens the P&L; a business can tolerate losing many small customers but not its highest-paying ones.

Example

A company loses only 3 customers in a month, but they were its largest accounts, producing a dollar churn far worse than the logo count suggests.