Customer Churn Rate

Divide number of customers lost in a period by the total number of customers at the beginning of the period.

Example

Acme Industries had 1200 customers at the beginning of May. At the end of May, 49 customers had cancelled their subscriptions. 49/1,200 = .04 (4% monthly churn).

Usage

Customer Churn Rate helps you determine if you're losing customers at an acceptable rate (some loss is inevitable). If this metric is increasing, it could indicate that something about your product is causing customer dissatisfaction.