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How to calculate Customer churn rate

The Customer churn rate formula, with plain worked examples you can check yourself.

Customer churn rate = L ÷ S × 100

The result is a percentage (%).

Worked examples

L = 40 · S = 400Customer churn rate = 10%
L = 8 · S = 400Customer churn rate = 2%
L = 12 · S = 200Customer churn rate = 6%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Lean Startup.

Related terms

ChurnBootstrappingMinimum viable productCrowdfundingScalabilityCustomer discovery

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