Customer churn rate
Churn Rate Calculator
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Churn = Customers lost ÷ Customers at start × 100
Customer churn rate is the share of customers who leave over a period. The quiet killer of recurring revenue: small churn compounds fast.
Healthy
Churn rate
4.0%
96 of 2,400 customers left, a 4.0% churn rate this period.
Customers retained2,304
Retention rate96.0%
Frequently asked questions
- How do you calculate churn rate?
- Divide the customers you lost during a period by the customers you had at the start, then multiply by 100. Starting with 2,400 customers and losing 96 is 4% churn. Always state the period: 4% monthly and 4% annual are very different.
- What is a good churn rate?
- Lower is better, and many subscription businesses treat 5% or less per period as healthy, but that is a convention, not a fixed rule. What counts as good depends on the period and the model: B2B SaaS churn is usually far lower than consumer apps. Compare to your own trend and industry.
- Is a 5% churn rate good?
- It depends on the period. 5% monthly compounds to roughly 46% of customers gone over a year, which is high for most models; 5% annual is strong. The 5% rule of thumb is a useful gut check for monthly churn, but treat it as a convention, not a law.
- What does a 20% churn rate mean?
- A 20% churn rate means one in five customers left during the period measured. Starting with 2,400 customers, that is 480 lost and 1,920 retained, an 80% retention rate. If that 20% is monthly, very little of the base survives a year.
- What causes a high churn rate?
- High churn usually traces to weak onboarding so customers never reach value, a mismatch between what was sold and delivered, pricing that outruns perceived value, poor support, or a product gap a competitor fills. Find which your leaving customers share through exit surveys and cohort analysis.