Definition
The state where expansion revenue exceeds revenue lost to churn and contraction, expressed as revenue growth from the existing base.
Formula
(Expansion MRR - Churned & Contracted MRR) / Starting MRR x 100
How to measure
Subtract churned and contracted MRR from expansion MRR for a cohort, then divide by that cohort's starting MRR.
Why track it
Achieving negative churn means the existing customer base grows revenue even with zero new customers, one of the strongest efficiency signals in SaaS.
Example
A cohort with $10,000 in expansion against $6,000 in churn and contraction, on a $200,000 base, reports +2% negative net churn.
FAQ
- What is Negative Net Churn?
- The state where expansion revenue exceeds revenue lost to churn and contraction, expressed as revenue growth from the existing base.
- How do you calculate Negative Net Churn?
- (Expansion MRR - Churned & Contracted MRR) / Starting MRR x 100
- Why track Negative Net Churn?
- Achieving negative churn means the existing customer base grows revenue even with zero new customers, one of the strongest efficiency signals in SaaS.