Glossary · Analytics

Churn Rate

The percentage of customers or subscribers who stop using a product or service during a given time period.

Churn rate (also called attrition rate) measures the percentage of customers who discontinue their relationship with a company during a specific period. It is calculated as: (Customers Lost During Period / Customers at Start of Period) × 100. For subscription businesses, churn is one of the most critical metrics–it directly impacts revenue, growth, and customer lifetime value. Types of churn include voluntary churn (customer actively cancels), involuntary churn (payment failure), revenue churn (lost revenue, which can differ from logo churn), and negative churn (expansion revenue exceeds churned revenue). Reducing churn is often more cost-effective than acquiring new customers.

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