Churn Rate

Percentage of customers lost over a given time period

Customer Success Product SaaS / Software E-commerce / RetailPercentageMonthly

FORMULA

Churn Rate = (Customers Lost During Period / Customers at Start of Period) × 100

Alternate Calculations

Revenue Churn(MRR Lost to Cancellations / MRR at Start of Period) × 100

Net Revenue Churn((Churned MRR - Expansion MRR) / Starting MRR) × 100

What is Churn Rate?

Churn Rate measures the percentage of customers who stop using your product or cancel their subscription during a given time period. It is one of the most critical metrics for subscription businesses because even small improvements in churn can have massive impacts on long-term revenue. Churn can be measured as customer churn (logo churn) or revenue churn (dollar churn). High churn indicates problems with product-market fit, customer satisfaction, or onboarding.

Chart

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Sample Data

month	startCustomers	churned	churnRate
Jan	1,000	30	3
Feb	1,095	28	2.6
Mar	1,197	25	2.1
Apr	1,327	27	2
May	1,480	29	2
Jun	1,631	26	1.6

Required Data Columns

Customers at StartCustomers LostPeriod