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    Churn Rate

    Churn rate is the percentage of customers (or revenue) lost during a given period, typically reported monthly or annually.

    Churn is the inverse of retention and the single most leveraged number in subscription businesses. Logo churn counts customers; revenue churn counts dollars (and is usually lower because larger accounts retain better). Gross churn measures lost revenue; net churn includes expansion and goes negative for best-in-class B2B SaaS. Benchmarks vary widely: consumer SaaS often runs 3-7% monthly logo churn; mid-market B2B 1-2% monthly; enterprise <1%. Churn surveys (exit interviews + churn-reason classification) are the highest-ROI survey program most teams under-invest in.

    Formula

    Monthly Churn Rate = (Customers lost in month / Customers at start of month) × 100

    Example

    Start of March: 2,000 customers. Lost 50 by month end. Churn = 50/2000 = 2.5%. Annualized: roughly 26% (compound).

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    Related terms

    Customer Lifetime Value (CLV / LTV)

    Customer Lifetime Value (CLV or LTV) is the total revenue (or gross profit) a business expects to earn from a customer over the entire relationship.

    Exit Interview / Exit Survey

    An exit interview collects feedback from customers or employees at the moment of departure to understand why they're leaving and to identify systemic issues.

    Net Promoter Score (NPS)

    Net Promoter Score (NPS) measures customer loyalty by asking how likely customers are to recommend a product or service on a 0-10 scale.

    Detractors (NPS)

    In NPS, detractors are respondents who score 0-6 on the 'likely to recommend' question — unhappy customers at high churn risk.

    Voice of Customer (VoC)

    Voice of Customer (VoC) is a systematic program for collecting, analyzing, and acting on customer feedback across every touchpoint and channel.

    Customer Satisfaction (CSAT)

    Customer Satisfaction (CSAT) measures how satisfied customers are with a product, service, or interaction on a 1-5 or 1-10 scale.