Handeware
Business

Churn rate

4%
Customers kept
96%

This is arithmetic for general information, not financial advice.

Churn Rate Calculator

Churn rate is the share of your customers who stopped buying or cancelled in a period. Enter how many you had at the start, and how many left before the end.

How it works

Churn rate is customers lost divided by customers at the start of the period, times 100. The share kept is 100 minus churn.

Count only the customers who were there at the start. Customers won during the period are not counted as lost, and they are not counted as kept either.

Worked example

Starting with 1,000 customers and losing 40 over the period, churn is 4%, leaving 96% of customers kept.

Questions

Which period should I use?

Pick the period that matches how often your customers can leave, such as a month for a monthly plan or a year for an annual one. Keep the same period when you compare.

Does a customer who pauses count?

It depends on your rule. Decide whether a pause is a loss, and use the same rule every time.

Why is churn often shown per month?

A monthly figure is easy to track and compare. Convert a yearly figure to a monthly one only if you know how your customers leave.

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