Churn Rate Calculator
Churn Rate Calculator
A churn rate calculator is for businesses to measure customer attrition over a specific period.
Let's say you run a subscription-based streaming service. At the beginning of the month, you had 10,000 subscribers. By the end of the month, 500 subscribers canceled their service. Your churn rate would be 5% (500 / 10,000 100). This means you're losing 5% of your customer base each month, which could significantly impact your long-term growth and *revenue.Churn Rate Calculation Chart
| Month | Starting Customers | Customers Lost | Churn Rate |
|---|---|---|---|
| January | 10,000 | 500 | 5% |
| February | 9,500 | 475 | 5% |
| March | 9,025 | 451 | 5% |
| April | 8,574 | 429 | 5% |
| May | 8,145 | 407 | 5% |
| June | 7,738 | 387 | 5% |
| July | 7,351 | 368 | 5% |
| August | 6,983 | 349 | 5% |
| September | 6,634 | 332 | 5% |
| October | 6,302 | 315 | 5% |
| November | 5,987 | 299 | 5% |
| December | 5,688 | 284 | 5% |
Churn Rate Formula
The churn rate formula is:
Churn Rate = (Number of Customers Lost / Total Number of Customers at the Start of the Period) x 100Using our streaming service example: Churn Rate = (500 / 10,000) x 100 = 5%
This formula gives you a percentage that represents the rate at which customers are leaving your service or product.
How Do You Calculate Churn Rate?
Calculating churn rate involves a few simple steps:
- Define your time period: Typically, this is done monthly, quarterly, or annually.
- Determine your starting number of customers: This is the number of customers you had at the beginning of the period.
- Count the number of customers lost: This includes all customers who stopped using your product or service during the period.
- Apply the formula: Divide the number of lost customers by the starting number and multiply by 100.
For instance, if you’re calculating quarterly churn:
Starting customers on January 1st: 50,000
Customers lost by March 31st: 2,500
Churn Rate = (2,500 / 50,000) x 100 = 5%
This means you lost 5% of your customer base over the quarter.