Operations guide
How to use the customer churn rate calculator
Worked example
Customer churn: calculation example
If 20 of 500 customers active at the start of a month leave, monthly churn is 4%. At that unchanged rate, the simple reciprocal lifetime estimate is 25 months.
The lifetime figure assumes the same monthly loss rate continues. It does not measure revenue churn or account for customer cohorts and reactivations.
Common question
Understand the result
Does customer churn measure lost revenue?
No. It counts customers, regardless of how much each pays. Revenue retention needs a separate calculation for lost, expanded, and contracted revenue.