Back to Glossary
Metrics

Churn Rate

The percentage of service subscribers who discontinue their subscriptions within a given time period.

What is Churn?

Churn is the enemy of growth. It represents the customers who leave your service. In a subscription business (SaaS), managing churn is often more important than acquiring new customers.

Formula

(Customers lost during period / Total customers at start of period) * 100

Types of Churn

  1. Customer Churn: Percentage of customers lost.
  2. Revenue Churn: Percentage of recurring revenue lost.