Metrics & KPIsAlso known as: Attrition rate, Customer churn

Churn

The rate at which customers stop doing business with a company over a given period.

Full Definition

Churn (or churn rate) is the percentage of customers who stop using your product or service during a given time period. It's a critical metric for subscription businesses and directly impacts LTV and growth. High churn indicates product or market fit issues. Monthly churn under 5% is generally considered healthy for B2B SaaS, while consumer apps often see higher rates.

Formula

Churn Rate = (Customers lost during period ÷ Customers at start of period) × 100

Examples

  • 15% monthly churn means losing 5 out of every 100 customers per month
  • 2Reducing churn from 5% to 3% can double LTV