Divide customers lost by customers at start to get churn rate and retention percent.
Overview
Churn rate measures the share of customers who leave during a period. Retention is simply 100% minus churn.
Enter customers at the start and customers lost. Churn% = lost ÷ start × 100.
Logo churn (accounts) differs from revenue churn; this tool focuses on customer-count churn.
Steps
Active customers at period start.
Cancellations or non-renewals in the period.
Review churn and retention percents.
Run each acquisition month separately.
Lower churn raises lifetime value.
Math
churn% = customersLost / customersStart × 100; retention% = 100 − churn%
Churn is losses divided by the starting base; retention is the complement.
Worked cases
45/1000 = 4.5%; retention 95.5%
4.5% churn.
2% churn; 98% retention
2% churn.
9% churn; 91% retention
9% churn.
Why use this
Questions