Churn Rate Calculator
The churn rate calculator accurately calculates the percentage of customers who stop using your product or service in a set period of time.
Enter the total number of customers, new customers gained, and customers lost during the same period. To calculate your churn rate.
What Is Churn Rate?
Churn rate is the percentage of customers who stop using your product or service during a specific period.
It’s a critical metric for understanding customer retention and business growth.
How to Use The Churn Rate Calculator
- Enter the total number of customers at the start of the period.
- Enter the NEW customers acquired during that period.
- Enter the number of customers lost during that period.
- Hit “Calculate” to get your churn rate instantly.
How to Calculate Churn Rate?
Churn rate measures the percentage of customers who leave your business during a set period.
It is calculated by dividing the number of churned customers by the total number of customers at the start, then multiplying by 100.
For example:
If you start the month with 500 customers, gain 100 new customers, and lose 50 customers, your churn rate will be calculated like that:
(500 + 100) – 50 = 550
(50 ÷ 550) × 100 = 10%
What Is a Good Churn Rate?
A good churn rate will typically be ZERO. Which will mean you are not losing a single customer.
However, that’s never the case.
There is no general benchmarks for churn rates, as it varies significantly between different industries and based on many factors. Comparing your churn rate to industry standards and your past data can help you assess your performance.
Why Is Churn Rate Important?
Churn rate directly impacts revenue and growth. A high churn rate indicates customer dissatisfaction or unmet expectations. Monitoring churn helps you:
- Identify gaps in customer experience.
- Focus on retention strategies.
- Reduce acquisition costs by retaining existing customers.
How to Reduce Churn Rate?
To reduce your churn rate you should first understand why your customers/clients leave in the first place so you know why you are losing customers.
In this infographic by Neil Patel they explain why customers would buy from a competitor.
Here is a simpler way to look at this.
- Pricing and Value: Customers want competitive prices, discounts, and loyalty rewards.
- Product and Service Quality: High-quality products, fast delivery, great customer service, and easy returns matter most.
- Trust and Credibility: Customers value trusted reviews, ethical practices, and sustainability.
- Convenience: A smooth, user-friendly website or app and easy checkout keep customers happy.
- Exclusivity: Premium services and unique offerings help your brand stand out.
Focus on these areas to reduce churn & keep your customers coming back.
