GlossaryChurn Rate
Startup Metrics

Churn Rate

Definition

The percentage of customers or revenue lost in a given period. Monthly churn of 2% means you lose 2% of your customer base or revenue every month.

Why founders care

High churn destroys growth. At 5% monthly churn, you lose over half your customers in a year. Investors look at churn before almost anything else in a SaaS business.

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