How to Calculate and Reduce Churn
Churn compounds, which makes a rate that looks survivable monthly brutal annually. 5% monthly is 46% a year.
Last updated 2026-08-17
Three numbers, not one
| Metric | What it tells you |
|---|---|
| Customer churn | How many accounts leave |
| Gross revenue churn | How much money leaves |
| Net revenue churn | Money lost minus expansion |
Why net churn is the real measure
If existing customers grow faster than others leave, net churn goes negative and revenue grows even with no new logos. That is the strongest structural position in SaaS.
Where churn actually happens
Most churn is decided in the first two weeks, not the month somebody cancels. If a user never reaches the moment the product becomes useful, everything after that is a formality — which is why onboarding is usually the highest-leverage fix.