Revenue & Sales

Intermediate

Churn Rate

Churn rate is the share of customers lost during a period relative to those at the start.

Formula

c = \dfrac{C_{lost}}{C_{start}} \times 100\%

Variables

cChurn rate

C_{lost}Customers lost

C_{start}Customers at start

Example

25 lost of 500: c = 5%

Did You Know?

Even small monthly churn compounds — 5% a month loses nearly half your customers in a year.

revenue churn retention saas

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More in Revenue & Sales

Total Revenue

Total revenue is the selling price multiplied by the number of units sold.

Net Revenue

Net revenue is gross revenue less returns, refunds and discounts — the amount actually recognised.

Average Revenue

Average revenue is total revenue divided by units sold — equal to price per unit in a single-price market.

Marginal Revenue

Marginal revenue is the extra revenue earned from selling one additional unit.

Revenue Growth Rate

The percentage change in revenue from one period to the next.

Monthly Recurring Revenue

Monthly recurring revenue is the number of active subscribers times average revenue per user per month.