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Startups & Venture Capital

Churn Rate

Also called: customer churn, revenue churn, attrition rate

Churn is the rate at which customers or revenue leave. Logo churn counts customers; revenue churn weights them by value, and the two can point in opposite directions when small accounts leave and large ones expand. Monthly churn of 5% sounds survivable and means losing nearly half your customers in a year, which is why it's the first number a subscription investor asks for.

Formula

Churn rate = Customers lost in period ÷ Customers at start

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