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Calculates revenue lost to customer cancellations monthly or annually. Indicates business sustainability and need for retention improvements.

Trin-for-trin guide

  1. 1Count customers cancelled in period
  2. 2Calculate their average monthly value
  3. 3Multiply: churned customers × customer value
  4. 4Calculate churn rate: (churn ÷ start customers) × 100%

Løste eksempler

Input
$100k, 5% monthly
Resultat
$5k churn

Almindelige fejl at undgå

  • Counting only explicitly cancelled, not churned inactive users
  • Not analyzing churn reasons by segment

Ofte stillede spørgsmål

What's healthy monthly churn rate?

SaaS target <5%, enterprise target <3%; higher churn indicates product-market fit problems.

What causes churn?

Product issues, poor support, pricing concerns, competitive alternatives, and changing customer needs.

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