1. What is Monthly Churn Rate?

The Monthly Churn Rate measures the percentage of customers who discontinued their subscriptions or stopped using your service during a given month. It's a key metric for understanding customer retention and business health.

2. How Does the Calculator Work?

The calculator uses the churn rate formula:

Where:

• Lost Customers — Number of customers who left during the month
• Total Customers at Start — Number of active customers at the beginning of the month

Explanation: The formula calculates what percentage of your starting customer base you lost during the month.

3. Importance of Churn Rate Calculation

Details: Tracking churn rate helps businesses understand customer satisfaction, predict revenue changes, and evaluate retention strategies. Lower churn rates typically indicate better customer loyalty and product-market fit.

4. Using the Calculator

Tips: Enter the number of customers lost during the month and the total number of customers at the start of the month. Both values must be positive numbers, and lost customers cannot exceed total customers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good churn rate?
A: Ideal churn rates vary by industry. SaaS companies typically aim for 5-7% annual churn (about 0.4-0.6% monthly), while e-commerce might see 3-5% monthly.

Q2: How is churn different from retention?
A: Churn measures customers lost, while retention measures customers kept. They're inversely related (Retention = 100% - Churn Rate).

Q3: Should I include new customers in churn calculations?
A: No, churn should only consider existing customers at the start of the period. New customers are tracked separately in growth metrics.

Q4: What causes high churn rates?
A: Common causes include poor product-market fit, inadequate customer support, pricing issues, or strong competition.

Q5: How can I reduce churn?
A: Strategies include improving onboarding, offering better support, implementing loyalty programs, and regularly collecting customer feedback.