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Calculates revenue lost to customer cancellations monthly or annually. Indicates business sustainability and need for retention improvements.
Водич чекор-по-чекор
- 1Count customers cancelled in period
- 2Calculate their average monthly value
- 3Multiply: churned customers × customer value
- 4Calculate churn rate: (churn ÷ start customers) × 100%
Worked Examples
Влез
$100k, 5% monthly
Резултат
$5k churn
Common Mistakes to Avoid
- ✕Counting only explicitly cancelled, not churned inactive users
- ✕Not analyzing churn reasons by segment
Frequently Asked Questions
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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