# Churn Rate

#### Definition

Churn Rate refers to the proportion of users that terminate their account in a set period. Alternatively, churn rate can be calculated as a proportion of revenue churn to monthly revenue.

#### Why use it

User Churn Rate can give insight about the average Customer Lifetime. A low User Churn Rate can also be an indicator of high customer satisfaction.

#### Adaptation

Alternatively, Revenue Churn Rate (the ratio of churned revenue to monthly revenue in percent) can be calculated. It gives insight about proportionally lost revenue volume.

Alias |
– |

Abbreviation |
– |

Unit |
Percentage |

#### Calculation

Churn Rate can be calculated by dividing the sum of users leaving a company by the total sum of users in a month.

∑ users leaving |

÷ ∑ of users |

User Churn Rate |

#### Example

A company wants to caculate their Churn Rate. In January they had 1.500 users and 50 left.

50 |

÷ 1.500 |

3,33% |