Churn Rate

Percentage of customers or subscribers who cancel their subscriptions in a given time period

What's Inside

    What is Churn Rate?

    Churn rate is a statistic that determines the percentage of customers or subscribers who cancel their subscriptions to an online service in any given time period.

    It can also be considered as how many people stop using your product after they start it for up to one year, based on churn rates and duration.

    Example

    If you had 100 signups last month and this month 50 unsubscribed from the service, that means 50% are canceling their subscription every month (or 50 out of 100).

    The higher your churn rate, there will be less sales since fewer people will feel compelled to buy your products. The lower the churn rate, the better it is!

    Formula