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Churn Rate Calculator

Divide the customers who left during the month by the customers you had at the start of it. Lose 42 out of 1,200 and churn is 3.5%, leaving 1,158. Invert that 3.5% and you get the average lifetime: 100 ÷ 3.5 is 28.6 months. It holds only if churn stays level month after month, and that month count is what gets multiplied in a lifetime-value calculation.

Your numbers

Monthly churn

3.5%

Average lifetime

28.6mo

Customers left

1,158

Formula

Monthly churn = Customers lost ÷ Customers at start × 100, Average lifetime = 100 ÷ Monthly churn

The denominator has to be the customers you started the month with. Fold this month's new signups into it and a fast-growing company reports churn lower than it is. Customer churn and revenue churn are different numbers — if only the cheapest plans leave, 3.5% of people can be 1% of revenue. For the 12-month compounded figure, use the retention-rate page.

What to enter

InputDefaultAccepted range
Customers at startCustomers you had at the start of the month; this month's signups are out.1,2000 and up
Customers lostCustomers who left during the month; a headcount, not a revenue figure.420 and up

Step by step

FormulaMonthly churn = Customers lost ÷ Customers at start × 100, Average lifetime = 100 ÷ Monthly churn
With the default numbersMonthly churn = 42 ÷ 1,200 × 100, Average lifetime = 100 ÷ Monthly churn
AnswerMonthly churn = 3.5 %

Quick reference table

Results when only Customers at start changes and everything else stays put.

Customers at startMonthly churn (%)Average lifetime (mo)Customers left
600714.3558
9004.6721.4858
1,2003.528.61,158
1,8002.3342.91,758
2,4001.7557.12,358

What each result means

ResultAt default values
Monthly churn (%)The share of starting customers who left; inverted, it gives the average lifetime.3.5
Average lifetime (mo)Average lifetime if churn holds level — 100 divided by the churn rate.28.6
Customers leftCustomers still on the books when the month ends.1,158

Common mistakes

The denominator has to be the customers you started the month with. Fold this month's new signups into it and a fast-growing company reports churn lower than it is. Customer churn and revenue churn are different numbers — if only the cheapest plans leave, 3.5% of people can be 1% of revenue. For the 12-month compounded figure, use the retention-rate page.

Glossary

Customers at start
Customers you had at the start of the month; this month's signups are out.
Customers lost
Customers who left during the month; a headcount, not a revenue figure.
Monthly churn
The share of starting customers who left; inverted, it gives the average lifetime.
Average lifetime
Average lifetime if churn holds level — 100 divided by the churn rate.
Customers left
Customers still on the books when the month ends.

Frequently asked questions

Q. How is Churn Rate Calculator calculated?

Monthly churn = Customers lost ÷ Customers at start × 100, Average lifetime = 100 ÷ Monthly churn — Divide the customers who left during the month by the customers you had at the start of it. Lose 42 out of 1,200 and churn is 3.5%, leaving 1,158. Invert that 3.5% and you get the average lifetime: 100 ÷ 3.5 is 28.6 months. It holds only if churn stays level month after month, and that month count is what gets multiplied in a lifetime-value calculation.

Q. Can you walk through an example?

With Customers at start 1,200, Customers lost 42, the answer is Monthly churn 3.5%.

Q. What do I need to enter?

Enter Customers at start, Customers lost. The result recalculates as you type, and an empty box counts as zero.

Q. How much does the answer move if I change a number?

Changing only Customers at start moves the answer to Customers at start 600 → Monthly churn (%) 7 and Customers at start 2,400 → Monthly churn (%) 1.75. The table below lays out five steps.

Q. How are the numbers rounded?

Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.

Q. Anything to watch out for?

The denominator has to be the customers you started the month with. Fold this month's new signups into it and a fast-growing company reports churn lower than it is. Customer churn and revenue churn are different numbers — if only the cheapest plans leave, 3.5% of people can be 1% of revenue. For the 12-month compounded figure, use the retention-rate page.

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