Customer Churn Rate
Churn rate is the percentage of customers (or revenue) that cancel or don't renew in a given period. It's the silent killer of SaaS businesses. Even small churn compounds into massive revenue loss over time.
Started the month with 500 customers. Lost 15. Churn rate = 15 / 500 × 100 = 3%.
Churn is the leak in your bucket. At 5% monthly churn, you'll lose 46% of your customers in a year. At 3%, you lose 31%. At 1%, only 11%. Small improvements in churn have massive compounding effects.
SMB SaaS
Mid-market
Enterprise
Annual churn
Customer churn counts logos (customers) lost. Revenue churn measures dollars lost. If your biggest customers are churning, revenue churn will be higher than customer churn, a bigger problem.
Track both. Monthly gives you faster feedback; annual is more meaningful for businesses with annual contracts. To convert: Annual Churn ≈ 1 - (1 - Monthly Churn)^12.
Common causes: poor onboarding, lack of product adoption, missing features, poor support, budget cuts, champion leaving, and failure to demonstrate ROI. Exit interviews are gold.
We build real-time dashboards that track Churn Rate and every other metric investors care about. Updated daily. Investor-ready.
