What is Churn rate?
Churn rate is the percentage of customers, or revenue, you lose over a period, usually measured monthly.
Formula
Customer churn = customers lost in the period ÷ customers at the start of the period
Example
You start the month with 200 customers and 10 cancel. Your monthly churn is 10 ÷ 200 = 5%, which means losing about 46% of customers over a year.
Why it matters for early-stage founders
Churn decides whether growth adds up or leaks away. High churn usually signals weak product-market fit or the wrong customers, not a marketing problem.
The common mistake
Hiding churn inside total customer growth. New sign-ups can mask a leak until acquisition slows down.
Find out why customers leave
solvee helps you check whether you are attracting the customers who stay.
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Reviewed October 12, 2026