Churn Rate Calculator

Churn rate formula

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

Understanding the churn rate result

The ideal churn rate for your business will vary according to your industry and targets.

• A low churn rate indicates that your business is effectively retaining customers, which is a positive sign of customer satisfaction and loyalty.
• A high churn rate suggests that a significant number of customers are leaving, signaling potential issues with your product or customer experience that need to be addressed.

When to calculate churn rate

Churn rates should be calculated regularly, especially in subscription-based businesses and SaaS companies. The churn rate should be tracked:

• Monthly or quarterly to understand customer retention trends over time
• After implementing a new customer retention strategy
• During customer satisfaction surveys to correlate feedback with actual churn
• As part of your annual business review

Monitoring churn rate helps identify trends and pinpoint areas where improvements are needed to retain customers.

How to calculate Churn rate with example

Suppose you start the month with 1,000 customers and lose 50 by the end of the month. You can calculate your churn rate as follows:

Churn Rate=(Number of Customers Lost During the Period​/Total Customers at the Start of the Period)×100

Churn Rate = (50/1,000)×100 = 5%

In this example, your Churn Rate is 5%, meaning 5% of your customers left during the month.

How to use the churn rate calculator

To calculate your churn rate, input the number of customers you have lost during a specific period and the total number of customers at the start of that period. The calculator will instantly calculate your churn rate, which will help you to determine the number of people who have stopped using your product in the given period.