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What is Customers Churn Rate?

It’s the percentage of paying customers who cancelled during a period. If you started the month with 100 paying customers and 5 cancelled, your customer churn rate is 5%.

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How to Calculate It

Customers Churn Rate = 100 − (Retained customers / Starting customers × 100)
Example:
  • Paying customers at start of month: 200
  • Paying customers retained: 190
Churn Rate = 100 − (190 / 200 × 100) = 5%

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Why It’s Useful

It tells you how fast you’re losing customers. Even a small monthly churn rate compounds quickly — 5% monthly churn means you lose over half your customers in a year. Compare this with Gross Revenue Retention to see if you’re losing big or small customers. Bigdelta calculates this automatically from your billing data.