Customer Churn Rate Calculator

Understanding and Calculating Customer Churn Rate

Customer churn rate, also known as customer attrition rate, is a critical metric for businesses that rely on recurring revenue, such as subscription services, SaaS platforms, and mobile apps. It measures the percentage of customers who stop doing business with a company over a specific period. A high churn rate can significantly impact a company's growth and profitability, as it costs more to acquire new customers than to retain existing ones.

Why is Churn Rate Important?

• Revenue Impact: High churn directly reduces recurring revenue.
• Customer Lifetime Value (CLTV): Lower churn increases the average CLTV.
• Acquisition Costs: Retaining customers is generally less expensive than acquiring new ones.
• Business Health Indicator: A stable or decreasing churn rate often indicates customer satisfaction and a healthy business model.
• Product/Service Improvement: Analyzing churn can reveal weaknesses in your product, service, or customer support.

How to Calculate Customer Churn Rate

The most common way to calculate customer churn rate is by dividing the number of customers lost during a period by the number of customers at the beginning of that period. This is typically expressed as a percentage.

The formula is:

Churn Rate = (Number of Customers Lost During Period / Number of Customers at the Start of Period) * 100

Period: This can be a month, quarter, or year, depending on your business cycle and reporting needs.

Customer Churn Rate Calculator

Enter the details for the period you want to analyze:

function calculateChurnRate() { var customersAtStartInput = document.getElementById("customersAtStart"); var customersLostInput = document.getElementById("customersLost"); var resultDisplay = document.getElementById("result"); var customersAtStart = parseFloat(customersAtStartInput.value); var customersLost = parseFloat(customersLostInput.value); if (isNaN(customersAtStart) || isNaN(customersLost) || customersAtStart < 0 || customersLost customersAtStart) { resultDisplay.textContent = "Number of customers lost cannot be greater than starting customers."; return; } var churnRate = (customersLost / customersAtStart) * 100; resultDisplay.textContent = churnRate.toFixed(2) + " %"; }