Churn Rate: The Leak in the Bucket
Growth means little if customers leave as fast as they arrive. Churn shows the leak, and retention shows how much of the bucket stays full.
What is the Churn Rate Calculator?
Enter customers at the start of a period and how many left during it, and the tool gives the churn rate and the retention rate. These are estimates from your own counts, and they are most useful when tracked the same way each month.
How to use it
- Enter customers at the start of the period.
- Enter customers lost during it.
- Click Calculate Churn Rate.
Worked example
With 1000 starting customers and 50 lost, churn is 5% and retention is 95%.
Monthly or annual churn?
Monthly churn suits subscriptions, while annual churn suits yearly contracts. Pick one and keep it consistent for comparisons.
Frequently asked questions
Does churn include new customers?
No. It only compares lost customers with the starting count, so new sign-ups do not hide losses.
What churn is acceptable?
It varies by industry and model, so compare with your own past months rather than a generic target.