What is churn?
The rate at which customers leave. A 5% monthly churn means you lose 5% of your customers each month, which compounds alarmingly over a year.
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Churn Rate Impact Calculator
See how reducing monthly churn cuts the customers and revenue you lose over a year.
annual lost ≈ customers × (1 − (1 − monthly churn)¹²)
Frequently asked questions
Why compound churn over 12 months?
Because each month's loss is taken from a shrinking base. The calculator uses 1 minus (1 minus monthly churn) to the power 12 to get the true annual loss, which is less than simply multiplying by 12.
Why is cutting churn so valuable?
Because it protects revenue you already have and lengthens customer lifetime. Dropping monthly churn from 5% to 3% can save a striking number of customers over a year.
Is churn only a subscription problem?
No, but it bites hardest there, since the whole model depends on recurring revenue. Any business with repeat customers should watch it.
How does churn relate to lifetime value?
Lower churn means customers stay longer, which directly raises their lifetime value. The LTV calculators show that link in money terms.