How is churn rate calculated?

Divide what you lost during the month by what you had at the start of it. Count customers for customer churn, or MRR for revenue churn.

Why is yearly churn lower than 12 times monthly churn?

Each month's churn comes out of what is left after the month before, so the losses shrink as the base shrinks.

Should new customers be counted?

Not in the starting number. Use the customers you had on the first day of the month, so new sign-ups do not hide the ones you lost.

Churn calculator

Use customer counts for customer churn, or MRR amounts for revenue churn. Nothing you type is sent anywhere.

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Customers at the start of the month

Or MRR at the start, for revenue churn

Customers lost during the month

Or MRR lost, for revenue churn

Fill in the numbers above to see the result.

How it is worked out

Monthly churn is what you lost during the month divided by what you started the month with. Losing 10 of 200 customers is 5% churn.

Churn compounds: 5% a month is not 60% a year but about 46%, because each month's 5% comes out of a smaller base. The average customer lifetime is 1 divided by monthly churn, so 5% means about 20 months.

Questions

How is churn rate calculated?: Divide what you lost during the month by what you had at the start of it. Count customers for customer churn, or MRR for revenue churn.
Why is yearly churn lower than 12 times monthly churn?: Each month's churn comes out of what is left after the month before, so the losses shrink as the base shrinks.
Should new customers be counted?: Not in the starting number. Use the customers you had on the first day of the month, so new sign-ups do not hide the ones you lost.

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