Canonical formula calculator
CHURN RATE
The percentage of customers you lose in a given period — the quiet killer of subscription businesses.
How many customers cancelled or left during the period.
How many active customers you had at the beginning of the period (not the end).
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Optional — helps us match this calculation against relevant case studies (coming soon).
What this tells you
Churn rate is the percentage of your customer base that leaves in a given period. Monthly churn under 1% is healthy for most subscription businesses. Monthly churn above 5% is a crisis. Annual churn over 30% means you are running a customer treadmill, not a growing business.
When to use it
Calculate churn monthly. Watch the trend more than the absolute number. Compare against industry benchmarks if you can find them. Use it to decide whether to invest in customer success or in new acquisition — when churn is high, fixing churn beats spending more on acquisition every time.
What it doesn’t tell you
Churn rate does not tell you why customers leave, which customers leave (your best ones or your worst), or whether churn is concentrated in new customers (onboarding problem) or long-term customers (product problem). The number is the alarm; the diagnosis takes more work.
Coming soon
Cases, plays, and benchmarks for this metric will appear here as the Moonshot knowledge libraries grow. For now: log in to track your number over time and Moonshot will surface trend warnings when the substrate fills in.