Calculate the percentage of customers leaving your service over time
Customer Count
Customer Churn Rate
0%
What is Churn Rate?
Churn Rate is the percentage of customers who stopped using your company's product or service during a certain time frame. It is a critical health indicator: high churn suggests that customers are unhappy or find no value, while low churn indicates high loyalty and "stickiness."
- The Growth Ceiling: If you acquire 100 customers a month but lose 100, your growth is zero. Reducing churn is often cheaper than acquiring new customers.
- Negative Churn: This happens when the revenue from existing customers (upgrades) exceeds the revenue lost from customers leaving. This is the "Holy Grail" of SaaS.
- Voluntary vs. Involuntary: Voluntary churn is when a user cancels. Involuntary churn is when their credit card fails or expires without them noticing.
What is a "Good" Churn Rate? +
For B2B SaaS, 3-5% annual churn is excellent. For B2C (Netflix, Spotify), monthly churn is usually higher, around 2-5% per month. Anything in double digits monthly is a major red flag.
How do I calculate Churn if I added new customers? +
This formula only looks at the customers you started with. New customers gained during the period are excluded from the calculation to give you a pure view of retention.
How can I reduce churn? +
Improve your onboarding process, collect feedback from canceling users (Exit Surveys), and reach out to users who haven't logged in for a while.
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