---
title: "Churn Rate — Definition, Formula & Examples | SpaceForms"
url: https://spaceforms.io/glossary/churn-rate
description: "Churn rate is the percentage of customers (or revenue) lost during a given period, typically reported monthly or annually."
lang: en
---

Home (https://spaceforms.io/) / Glossary (https://spaceforms.io/glossary) / Churn Rate

# Churn Rate

Churn rate is the percentage of customers (or revenue) lost during a given period, typically reported monthly or annually.

Churn is the inverse of retention and the single most leveraged number in subscription businesses. Logo churn counts customers; revenue churn counts dollars (and is usually lower because larger accounts retain better). Gross churn measures lost revenue; net churn includes expansion and goes negative for best-in-class B2B SaaS. Benchmarks vary widely: consumer SaaS often runs 3-7% monthly logo churn; mid-market B2B 1-2% monthly; enterprise <1%. Churn surveys (exit interviews + churn-reason classification) are the highest-ROI survey program most teams under-invest in.

## Formula

`Monthly Churn Rate = (Customers lost in month / Customers at start of month) × 100`

## Example

Start of March: 2,000 customers. Lost 50 by month end. Churn = 50/2000 = 2.5%. Annualized: roughly 26% (compound).

### Run a Churn Rate survey free

SpaceForms includes pre-built templates with validated wording. Unlimited responses on the free tier — no credit card.

Start free (https://spaceforms.io/free-survey-builder)

## Related terms

### Customer Lifetime Value (CLV / LTV)

Customer Lifetime Value (CLV or LTV) is the total revenue (or gross profit) a business expects to earn from a customer over the entire relationship.
https://spaceforms.io/glossary/customer-lifetime-value

### Exit Interview / Exit Survey

An exit interview collects feedback from customers or employees at the moment of departure to understand why they're leaving and to identify systemic issues.
https://spaceforms.io/glossary/exit-interview

### Net Promoter Score (NPS)

Net Promoter Score (NPS) measures customer loyalty by asking how likely customers are to recommend a product or service on a 0-10 scale.
https://spaceforms.io/glossary/nps

### Detractors (NPS)

In NPS, detractors are respondents who score 0-6 on the 'likely to recommend' question — unhappy customers at high churn risk.
https://spaceforms.io/glossary/detractors

### Voice of Customer (VoC)

Voice of Customer (VoC) is a systematic program for collecting, analyzing, and acting on customer feedback across every touchpoint and channel.
https://spaceforms.io/glossary/voice-of-customer

### Customer Satisfaction (CSAT)

Customer Satisfaction (CSAT) measures how satisfied customers are with a product, service, or interaction on a 1-5 or 1-10 scale.
https://spaceforms.io/glossary/csat

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