The percentage of customers (logos) who cancel entirely over a period, counted as accounts rather than revenue.
Logo churn rate = (customers lost in period ÷ customers at start of period) × 100
You start the month with 400 customers and 16 cancel during it.
(16 ÷ 400) × 100 = 4% monthly logo churn
Logo churn counts customers lost, not revenue lost. Each cancelled account is one churned logo regardless of what it paid, so a £20/mo customer leaving and a £20,000/mo customer leaving each count the same. It is another name for customer churn, and the term "logo" simply emphasises that you are tallying brands or accounts on a board, not pounds.
Because it ignores deal size, logo churn is the cleanest read on broad satisfaction and product-market fit. A rising logo churn rate tells you customers are leaving across the board, which usually points to onboarding, value delivery, or fit problems rather than a single large account walking.
Its blind spot is the mirror image of its strength. Logo churn treats every customer equally, so it can look healthy while a handful of big accounts quietly leave — or look alarming when only small accounts churn. That is why it is always read alongside revenue churn, which weights each loss by the money it took.
Logo churn is the broadest gauge of whether customers are sticking around. Because it counts accounts equally, it surfaces widespread dissatisfaction that revenue churn can mask when a few large accounts are still expanding — making it an essential early read on product-market fit.
Healthy SaaS see roughly 5–7% monthly logo churn for SMB-focused products and under 1% monthly for enterprise (often quoted as 5–7% annually). Lower is always better, and the aim is to pair low logo churn with revenue retention above 100%.
Yes. "Logo churn" and customer churn are two names for the same metric — the share of accounts that cancel in a period, counted as logos rather than revenue.
Logo churn counts accounts lost, treating every customer equally. Revenue churn weights each loss by the MRR it removed, so one large account leaving can mean low logo churn but high revenue churn.
Logo churn is the better read on broad satisfaction and product-market fit. Revenue churn can stay low while many small accounts leave, so reading both together tells you whether you are losing the wrong customers or simply the small ones.
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