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Glossary · CHR

Churn Rate

Percentage of customers or subscribers who cancel in a given period

Churn rate is the percentage of customers or subscribers who stop using a service in a given period (usually monthly). It is one of the most important indicators of subscription business health.

Churn rate = Lost customers ÷ Customers at start of period × 100%

Customers at start: 500 · Cancellations: 25
Churn = 25 ÷ 500 × 100% = 5%/mo

Benchmarks: good B2B SaaS: <2% · B2C: 5–8%

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