What is churn rate?
Churn rate is the percentage of customers who stop buying from you or cancel during a set period. To calculate it, divide the number of customers you lost by the number you had at the start of the period, then multiply by 100.
Last reviewed .
How to calculate churn rate
Divide the customers you lost in the period by the customers you had at the start, then multiply by 100.
Percentages in this equation use numeric percent values: 40 means 40%.
Why churn rate matters
Churn rate shows how quickly you lose the customers you worked to win. Even a small monthly rate adds up over a year, and it can cancel out the growth from new customers.
It also affects how much a customer is worth. The longer people stay, the more revenue each one brings in.
Customer churn and revenue churn
Customer churn counts people or accounts, while revenue churn counts the money lost from cancellations and downgrades. The two can differ a lot if your biggest customers leave or your smallest ones do.
Pick one definition, apply it the same way each period, and note which one you're reporting.
How to reduce churn
Start by finding out why people leave, through exit surveys, support conversations, and usage data. Then fix the biggest causes, which are often a weak first experience, poor support, or a mismatch between what was promised and what was delivered.
Disclaimer
This calculator is for informational purposes only, and we don't guarantee the accuracy of its results. You're responsible for verifying any results before relying on them. See our terms of use.
Common questions
How do you calculate churn rate?
Divide the customers lost during the period by the customers you had at the start, then multiply by 100. For example, losing 50 of 1,000 customers is a 5% churn rate.
What is a good churn rate?
It depends on your business model, your customers, and the length of your contracts. Compare your rate with your own history and aim to bring it down over time.
What's the difference between churn rate and retention rate?
Churn rate is the share of customers you lost, and retention rate is the share you kept. When both cover the same customers and period, they add up to 100%.
Should new customers be counted in churn?
The standard formula uses only the customers you had at the start of the period. Customers who joined and left within the same period are often tracked separately so they don't distort the rate.
Want help putting this to work?
Tell us where your marketing stands today, and we'll show you what to do first.