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How to Calculate Churn Rate

Formula

Churn Rate = (Customers Lost / Customers at Start) x 100 Retention Rate = 100 - Churn Rate

Churn rate is the inverse of retention. It tells you what fraction of your customer base walks away during a given period (usually monthly or annually). Even small differences in churn compound dramatically: a company with 3% monthly churn loses roughly 31% of customers yearly, while 5% monthly churn means losing over 46% annually.

Esempio Risolto

A subscription business starts the month with 1,000 customers and loses 50.

  1. Churn Rate = (50 / 1,000) x 100 = 5%
  2. Retention Rate = 100 - 5 = 95%
  3. Customers Remaining = 1,000 - 50 = 950