Business & Commerce
Intermediate

Churn Rate

The percentage of customers who stop buying over a period.

Formula

Churn=Customers LostCustomers at Start×100%Churn = \dfrac{Customers\ Lost}{Customers\ at\ Start}\times 100\%

Variables

ChurnChurn rate
LostCustomers lost
StartCustomers at period start

Example

50 lost / 1000 start = 5% churn

Did You Know?

A 5% monthly churn quietly loses nearly half your customers over a single year.

churnretentionsaas