Churn
Quick answer
What is churn?
The rate at which paying customers cancel or stop buying over a given period.
Also called: Churn rate, Customer churn, Monthly churn.
How to calculate churn
Churn rate = (customers lost in the period ÷ customers at the start) × 100
Worked example: 25 cancellations from 500 members at the start of the month = (25 ÷ 500) × 100 = 5% monthly churn.
Do not include customers who joined during the period in the starting count, or the number will look better than it is.
In plain English
Churn measures loss, not growth — the percentage of subscribers or customers who leave in a month or year. Even fast-growing businesses can stall out if churn quietly eats their new signups.
Example
A membership with 500 subscribers that loses 25 in a month has 5% monthly churn.
Why it matters
High churn is often a sign the buyer sequence delivered a great pitch but the transformation promise, delivery, or onboarding didn't hold up.
Common questions
- How do you calculate churn?
- Divide the number of customers lost during a period by the number you had at the start of that period, then multiply by 100.
- What does daily churn mean?
- Daily churn applies the same calculation to a single day: customers lost that day divided by customers at the start of the day.
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