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.

Sign up for solvee

Related terms

Reviewed October 12, 2026