Why Use This Calculator?
In per-seat pricing SaaS models, account-level churn doesn’t tell the whole story. A large enterprise might downsize their team, causing massive contraction without the account churning. Tracking seat churn gives you a precise look at usage and revenue impact.
Formulas
\(\text{Churned Seats} = (\text{Start Seats} + \text{Added Seats}) - \text{End Seats}\) \(\text{Seat Churn Rate} = \left( \frac{\text{Churned Seats}}{\text{Start Seats}} \right) \times 100\) \(\text{Net Seat Growth} = \text{Added Seats} - \text{Churned Seats}\)
Real-World Comparison Table
| Metric | Focus | Application |
|---|---|---|
| Account Churn | Number of logos lost | Flat-rate SaaS |
| Seat Churn | Number of licenses lost | Per-seat SaaS |
Step-by-Step Guide
- Enter the total number of seats at the beginning of the period.
- Enter any new seats added (expansion + new sales) during the period.
- Enter the total number of seats at the end.
- Calculate to find out how many seats were churned.
FAQs
What is seat-based churn? Seat-based churn measures the loss of individual licenses or user seats within active or canceled accounts.
Why use seat-based churn instead of account churn? For per-seat pricing models, losing seats impacts revenue even if the account doesn’t churn completely.
Can seat churn happen without account churn? Yes, this is known as contraction. An account might reduce its seats from 50 to 40, resulting in 10 churned seats.
What is net seat growth? It’s the difference between seats added and seats churned.
How to reduce seat churn? Ensure all users are engaged and finding value. Identify inactive seats before the customer realizes they are paying for unused licenses.
Is this the same as revenue churn? Close, but not exactly. It represents the underlying volume of licenses that drives revenue.