Customer Churn Rate
The percentage of customers who cancel their subscription in a given period.
Formula
Why it matters
Churn directly determines LTV and the sustainability of your acquisition spend. A business with 5% monthly churn has an average customer lifespan of 20 months — versus 100 months at 1% churn. That difference dramatically affects how much you can afford to spend acquiring each customer.
How to improve Customer Churn Rate
Identify the onboarding steps where churned customers drop off, resurface value at 30-day and 90-day milestones, and proactively contact at-risk accounts before they cancel.
Monthly churn under 2% is good for SaaS. Annual churn under 5% is considered best-in-class for enterprise. Consumer SaaS typically runs 3–8% monthly.
Prooflytics tracks Customer Churn Rate automatically from your connected sources and flags it in your daily briefing when it moves significantly.
Start free trialCustomer Churn Rate calculator
Calculate monthly churn rate
Monthly churn rate
Churn = (Lost ÷ Starting Customers) × 100
—
Annual churn from monthly churn
Annual churn rate
Annual Churn = 1 − (1 − Monthly Churn)^12
—
Frequently asked questions
What is revenue churn vs customer churn?
Customer churn counts the number of customers lost. Revenue churn (or MRR churn) counts the revenue lost from cancellations and downgrades. Revenue churn can be negative (net negative churn) when expansion revenue exceeds lost revenue — a sign of a healthy SaaS business.